Setting up a contract labor employee takes two steps: first mark the vendor as a contractor in Vendor Management, then configure the employee's Labor tab. A contractor is paid either directly (1099-style) or through a vendor/agency and can clock in and out just like an hourly employee.
1. Mark the Vendor as a Contractor
Navigate to Administration, then Vendor Management (formerly located under accounting). Search for the vendor you want to mark as a contractor, then click the vendor's name to open their profile. Scroll down to the Contract Agency/Vendor toggle and turn it on to designate the vendor as a Contractor Vendor.
2. Configure the Employee's Labor Tab
Open the Labor tab on the user's employee profile and complete the following:
1. Set Employee Type to Contractor.
2. You can leave Average Hours Worked blank – it only affects PTO/Vacation calculations.
3. Fill in Date of Birth and SSN if known (both optional).
4. Under Payment Method, choose Direct for 1099-style payment, or choose Vendor/Agency to link the contractor through the vendor you set up above. If paying through a vendor, select the vendor from the dropdown.
5. Optionally enable Allow Overtime if applicable.
6. Specify the contractor's Position(s) and Pay Rate, then save.
Once saved, the contractor can clock in and out just like an hourly employee.
Payroll Tab and Contractor Report
On the Payroll tab, contractors are listed separately from hourly and salaried staff.
To export contractor hours, navigate to Reports, then Report Gallery, then Contractor Report. This report shows total hours worked per position and can be shared with the vendor for invoicing purposes.