[US] Add a contractor or regular vendor

In Wave, you can add regular vendors or 1099-NEC contractors. Learn more about the difference between an employee and an independent contractor.

Regular vendors are companies that provide goods and services to your business, while a 1099-NEC contractor is a company or individual that provides a service that requires a year-end Form 1099-NEC.

Add a contractor or regular vendor

Add bank details to pay a contractor with direct deposit

Add a contractor or regular vendor

You can only add contractors on the web version of Wave.

To add a 1099-NEC contractor, you must have an active subscription to Wave's payroll feature and at least one employee. An active payroll subscription also allows you to generate 1099-NEC tax forms at the end of the year and pay contractor bills by direct deposit.

To add a contractor or regular vendor:

1. On the left-side menu, click Purchases > Vendors.
2. Click Add a vendor.
3. Enter the contractor's name.
4. Select the vendor type: Regular or 1099-NEC.
5. Fill out the contractor's information. To add a contractor’s account number, phone, fax, mobile or toll-free number, or website, click Enter additional information (optional).
6. Click Save to return to the Vendors page.

To generate a Form 1099-NEC at year-end, a contractor must have all of their information filled out, including their full name and correct TIN.

Add bank details to pay a contractor with direct deposit

With an active payroll subscription, you can pay your contractors using Wave’s direct deposit feature. Regular vendors cannot be paid using direct deposit.

To add a contractor's direct deposit bank details:

1. Open the Vendors page.
2. Next to the contractor's name, click Add bank details.
3. Enter their banking details.
4. Select the bank account type.
5. Click Save.