Quote Originally Posted by Burke View Post
In that scenario, I would too. But my answer dealt with travel costs like airfare, hotels, rental car, etc paid by the TP up front then reimbursed separately from the job payment by his client maybe a couple of months later when an expense voucher was sent in. And I agree with Rapid Robert on the purchase/sale of the materials by OP's client. It would go into COGS, whether he made a profit or not on them.
I would have a hard time with that. We are not talking about an employer/employee relationship. We are talking about a employer/vendor relationship and as such any travel related items should either be baked into the final cost of the project (not separably stated) or perhaps listed as a separate line item in the invoice. To me it would be very unusual for a business to issue two separate checks, one for the project, 1 for the "travel" and issue a 1099 only for the project.