When you add a contractor, be sure to have them fill out an IRS Form W-9.

Note: Be sure to keep the contractor forms (W-9, direct deposit authorization, and so on) for three years after their last transaction with the company.

Add the contractor to your payroll account

  1. Click the Employees tab.
  2. Scroll down to Contractors, then click Add new contractor.
  3. Select the contractor type.
    You set up the contractor as an individual or a business contractor, which determines the type of info you collect. For example, enter a Social Security number for an individual and an Employer Identification Number (EIN) for a business contractor.
  4. Enter the contractor's info:

    Individual contractors

    • Current status (active or inactive) lets you hide or show contractors on payday and on reports.
    • Social Security number (SSN) looks like 123-45-6789If the contractor provides an ITIN (Individual Taxpayer Identification Number) which starts with a 9 and has a range between 70 to 99 in the fourth or fifth digit, it will be rejected. The ITIN isn't supported in Intuit Full Service Payroll.
    • Name (first and last) and postal address.
    • Payment method paper check or direct deposit.You can send payments to a contractor's checking or a savings account. You cannot split a direct deposit transaction into two accounts.
      We recommend getting a voided check and a direct deposit authorization form from the contractor to ensure accuracy

    Business contractors

    • Current status(active or inactive) lets you hide or show contractors on payday and on reports.
    • Employer Identification Number(EIN looks like 12-3456789)If the contractor provides an ITIN (Individual Taxpayer Identification Number, which starts with a 9 and has a range between 70 to 99 in the fourth or fifth digit), it will be rejected. The ITIN isn't supported in Intuit Full Service Payroll.
    • Business name and postal address
    • Payment method (paper check or direct deposit)You can send payments to a contractor's checking or a savings account. You cannot split a direct deposit transaction into two accounts.
      We recommend getting a voided check and a direct deposit authorization form from the contractor to ensure accuracy
  5. Set up the contractor for direct deposit, if you selected direct deposit as the payment method.
    1. Get the contractor's bank account info:
      Account type (checking or savings)
      Routing and account numbers (the contractor can get these from a sample check)
    2. Click Edit in the Pay method field.
    3. Select Direct Deposit in the Pay method drop-down.
    4. Enter the contractor's bank account info.
    5. Click OK.
  6. If you've already paid the contractor outside the service this calendar year, click the checkbox and enter the appropriate info.

    When you add the lump sum total you've already paid the contractor, ensure that the Form 1099-MISC we send to the contractor at year end has the correct dollar amount.

    • Compensation — enter the total previous payments to be reported in Box 7 of Form 1099-MISC.
    • Reimbursement — enter business-related expenses prepaid by the contractor that you paid back to them. Any amounts entered here are not reported on Form 1099-MISC.
  7. Click Continue.
  8. If the contractor is set up as individual, you can set them up with Paycheck Records.
    1. Select the View pay stubs online option.
    2. Enter the contractor's email address, then click Save.
    3. Click Send email if you want to send the contractor a temporary user ID and password now.

    The contractor receives an email with the temporary user ID and password and instructions for signing in to Paycheck Records and creating a new, unique user ID and password.

  9. Click Done.