You can pay contractors just like you pay employees. To pay a contractor, you'll need a tax ID number from them.
- If they provide a Social Security number (SSN, looks like 123-45-6789), add them as an Individual contractor.
- If they give you an Employer Identification Number (EIN, looks like 12-3456789), add them as a Business contractor.
To add a contractor:
- Go to the Employees tab.
- Click Add a Contractor.
- If you just want to pay a contractor, click Make a contractor payment. (If you need to file a 1099-MISC form for a contractor, choose the File 1099-MISC option.)
- Follow the steps on the Add a Contractor page.
- If you have paid the contractor earlier in the current year, be sure to select the checkbox and enter the total amount you previously paid them.
- Click OK.
Not sure if you are paying an employee or a contractor? See What is the difference between an employee and an independent contractor (self-employed person)?
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