How do I set up Contract Labor Employees?

Contract Labor set up is done in two steps:

1. Administration → Vendor Management

Go to Administration → Vendor Management (formerly under Accounting). In this page, search for the vendor you’d like to mark as a contractor.

Click on the vendor’s name to open their profile, then scroll down to the “Contract Agency/Vendor” toggle.

Turn this on to mark the vendor as a Contractor Vendor.

2. Employee Profile → Labor Tab

Next, open the Labor tab on the user’s employee profile.

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 (optional fields).
4. Under the Payment Method section:
5. Choose Direct for 1099-style payment.
6. Choose Vendor/Agency to link through the vendor you set up above.
7. If paying through a vendor: select the vendor from the dropdown.
8. Optionally, enable Allow Overtime if applicable.
9. Finally, specify the contractor’s Position(s) and Pay Rate.

Once saved, the contractor can clock in and out just like an hourly employee.

Payroll Tab & Contractor Report

On the Payroll tab, contractors are listed separately from hourly and salaried staff.

To export contractor hours, go to Reports → Report Gallery → Contractor Report. This report shows total hours worked per position and can be shared with the vendor for invoicing purposes.