Independent contractors provide a service for your business and require a tax form at year-end. Learn more about the difference between an employee and an independent contractor.
Independent contractors can be paid in two ways: using direct deposit or manually marking a bill as paid. You cannot print a check for a contractor payment.
Add a bill payment to a scheduled pay period
Add a bill payment to a scheduled pay period
For businesses in the United States, you must have an active payroll subscription with at least one employee to manually add a payment to a bill for an independent contractor.
Contractors use the same pay schedule as your employees. To pay an independent contractor, add the relevant bills to your pay period. To add a bill payment to a pay period:
- On the left-side menu, click Purchases > Bills.
- Locate the contractor bill.
- Under Actions, click Pay Contractor.
- Select Pay with direct deposit.
The contractor bill is now included in the next pay period.
When you pay contractors by direct deposit, Wave takes care of the bookkeeping for you. Learn more in Automatic bookkeeping when paying contractors via direct deposit.
Bill payment statuses
When you add a bill payment to a pay period, the bill is marked as pending.
When a pay period begins to process, the included bills are marked as scheduled.
When the pay period completes and the funds are processed, the included bills are marked as paid.