Employees and contractors

The employee record — pay type, rate, overtime, W-4, deductions, burdened cost, bill rate and work state — and the contractor list of 1099-tracked vendors with year-to-date payments.

Payroll → Employees; Payroll → Contractors.

An employee carries a pay type (hourly, salary or commission only) and rate, whether they are overtime-eligible, their federal W-4 (2020 or later), benefits and deductions (pre-tax or post-tax, fixed or a percentage; garnishments are capped at 25% of disposable earnings), a work state and residence state (the work state drives state withholding and SUTA), and an Active tick. Two rates are for costing rather than pay: Burdened cost rate (what an hour really costs you, which you enter, used for job costing and service profitability) and Default billable rate (what a customer is charged for their time). Time entries and service orders take the cost and bill rates as they stand when the entry is made. See Running payroll for the run itself.

Bank details for direct deposit are not kept on the employee — IntuBu does not pay employees; see Running payroll.

Contractors are not employees; they are vendors marked Track for 1099. The Contractors page lists them with W-9 status, the 1099 box and bill payments year to date. The full picture for filing, including expenses and cheques, is in 1099 preparation. Mark a vendor for tracking on the vendor record.