How to Set Up a Contractor
Watch our video instructions.
Setting up Contractors
Navigate to "Company Settings", "Payroll Settings", and then "General Settings". Select "More payslip options". Select "Allow to use Buyer Created Invoice", and then "Save".
Navigate to "Employee Settings", and then "Employee Details". Select "Set Up a New Employee" and begin entering your contractor’s details. Check the box "Use Buyer Created Invoice” on the right-hand side, and then select "Save".
Enter the contractor's "IRD Number", and set their "Tax Code" to “WT". Enter their "Tax Rate", and if they are "GST Registered", check the relevant box. If they are exempt from withholding tax, enter their "Tax Rate" as "0", and enter their "Exemption Certificate No". Once you have entered all the necessary fields, select "Save".
Open "Payment Method" under "Other Details", and enter the contractor’s payment information too. If you have been following the automatic set up the system guides you through, then you can stop the set up process at this point as no further information needs to be entered.
Processing a Contractor’s Pay
After you have set up your contractor(s), navigate to "Process a Pay", and then "Time & Income". Select a contractor from the left-hand side. Select "Other Income" under “More Income & Deductions".
Select "Set Up Items" on the right-hand side of the new menu. You will only need to set this up once.
Select "Contracting Work" from the left-hand side, and then select the arrow point over towards the right-hand side box. Close this menu.
Select "Add". Set the Item as "Contracting Work". If you know the exact amount that they need to be paid then set the "Quantity" as "1", and the "Pay Rate" as the total amount. It may be worth adding a description too. Select "Save".
Process their pay as per normal by approving them in both "Time & Income", and "Take Home Pay".