How to add contractors

You can pay independent contractors using Wave's payroll software. Contractor payments have reporting requirements that differ depending on which country your business is located in.

Add contractors (businesses in the United States)

Add contractors (businesses in Canada)

Add contractors (businesses in the United States)

Add independent contractors that require a 1099 tax form:

  1. On the left-side menu, click Purchases > Vendors.
  2. Click Add a vendor.
  3. Enter the Vendor Name.
  4. Select the type 1099-NEC contractor.
    The 1099-NEC contractor type allows you to generate 1099-NEC tax forms at year end, and pay bills by direct deposit. These both require a subscription to Wave's payroll feature.
  5. Select if your contractor is an Individual or a Business from the Contractor type drop-down menu.
  6. For contractors you pay as individuals, enter a valid Social Security Number (SSN). For contractors you pay as a business, enter a valid Employer Identification Number (EIN).

    Ensure you enter the correct type of number in the correct format. This ensures tax ID verifications and 1099-NEC form submissions are accurate.

  7. Fill in the remaining sections.

    To add a contractor’s account number, phone, fax, mobile or toll free number, or website, click Enter additional information (optional).

  8. Click Save.

Once saved, you’ll be taken back to the Vendors page. To set up a contractor’s profile so you can pay them by direct deposit:

  1. Click Add bank details next to their name on this page.
  2. Enter their routing and account numbers, and select the bank account type.
  3. Click Save.

Add contractors (businesses in Canada)

Add independent contractors that require a T4A tax form:

Wave does not currently support contractors located in Quebec.

  1. On the left-side menu, click Purchases > Vendors.
  2. Click Add a vendor.
  3. Enter the Vendor Name.
  4. Select the type T4A contractor.
    The T4A contractor type allows you to generate T4A slips at year end, and pay bills by direct deposit. These both require a subscription to Wave's payroll feature.
  5. Select if your contractor is an Individual or a Business from the Contractor type drop-down menu.
  6. For contractors you pay as individuals, enter a valid Social Insurance Number (SIN). For contractors you pay as a business, enter a valid CRA account number.

    Ensure you enter the correct type of number in the correct format. This ensures T4A forms are accurate.

  7. Fill in the remaining sections.

    To add a contractor’s account number, phone, fax, mobile or toll free number, or website, click Enter additional information (optional).

  8. Click Save.

Once saved, you’ll be taken back to the Vendors page. To set up a contractor’s profile so you can pay them by direct deposit:

  1. Click Add bank details next to their name on this page.
  2. Enter their bank, institution and account numbers, and select the bank account type.
  3. Click Save.

Does Wave generate slip T5018?

Wave does not generate slip T5018, Statement of Contract Payments. T5018 is an informational return used to report contractor payments and credits if a business’s primary income is from construction activities. Learn more about slip T5018 in this CRA resource.