# 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.

Section: Payroll · Canonical: https://intubu.intuitivecapital-dai.com/docs/payroll-employees

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](https://intubu.intuitivecapital-dai.com/docs/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](https://intubu.intuitivecapital-dai.com/docs/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](https://intubu.intuitivecapital-dai.com/docs/form-1099). Mark a vendor for tracking on the vendor record.