Contractor Labor Setup is done in two steps:
1. Accounting / Selecting the vendors that can be assigned as a contractor.
2. Setting up employee settings
To be able to assign a vendor as a Contractor, in the Accounting module, go to the Vendors page, and search for the vendor in the Search box.
Click on the vendor name to open their profile and scroll down to the Contract Agency/Vendor.
Turn this on in order to activate this as a Contractor Vendor.
The next step is how to setup employee profiles for the contractors.
The differentiator is in the Labor tab in the user profile. The Employee Type should be set to Contractor.
From there, ignore the Average Hours Worked, as this pertains to PTO/Vacation.
Add in the Date of Birth if you know it. If this is unknown, select any date. Same for the Social Security Number (the SSN is not a required field, so if this is unknown, it can be left blank).
Next, select how this contractor is being paid – directly, like a 1099 employee, or are they being paid via a contract vendor or staffing agency.
If paying Directly, move down to Entity Wide Settings. If Vendor/Agency, select the vendor that has been setup as a contract vendor in the initial steps.
Next, turn the Allow Overtime feature On if this contractor is susceptible to paying an overtime rate.
The last information to be filled out is related to the position(s) worked and rate of pay.
After the employee is setup with the accurate settings, they’re able to clock in & out like an hourly employee.
On the Payroll tab, all of the Contractors are separated from the Hourly and Salaried employees.
Additionally, there is a Contract Report now available in Labor Management.
In Reports / Report Gallery / Select Contractor Report:
This will show the employees’ total time worked by position that can be sent to the vendor for invoice backup.