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Setting Up Your First Contractor

Setting Up Your First Contractor

This guide walks you through the complete process of adding a contractor and making your first payment.

Before You Start

Make sure you have:

  • ✅ Created your Payroll account
  • ✅ Verified your email address
  • ✅ Completed your company profile
  • ✅ Added a payment method

Step 1: Gather Contractor Information

You’ll need:

  • Full legal name
  • Email address
  • Country of residence
  • Preferred payment currency
  • Bank account details or PayPal email
  • Tax identification number (if applicable)
  • Contract or agreement (recommended)

Step 2: Add the Contractor

  1. Log in to your Payroll account
  2. Click Contractors in the main navigation
  3. Click Add Contractor button
  4. Fill in the contractor form:

Personal Information

  • Full Name: Enter contractor’s legal name
  • Email: Primary email for notifications
  • Phone: Optional but recommended
  • Country: Select from dropdown

Payment Information

  • Currency: Defaults to country’s currency (can change)
  • Payment Method: Bank Transfer, PayPal, Wise, or Crypto
  • Bank Details: Account number, routing number, SWIFT/IBAN
  • Tax ID: If required for your country

Additional Details

  • Hourly Rate: Optional, for reference
  • Contract Start Date: When they started working
  • Notes: Any important information
  1. Click Save Contractor

Step 3: Upload Documents

  1. In the contractor profile, go to Documents tab
  2. Click Upload Document
  3. Upload:
    • Contract or agreement
    • Tax forms (W-9, W-8BEN, etc.)
    • Invoice template (if they use one)
  4. Add descriptions for each document

Step 4: Verify Information

Before making your first payment:

  • ✅ Double-check bank account details
  • ✅ Confirm currency is correct
  • ✅ Verify tax information
  • ✅ Test email address (send a test message)

Step 5: Create Your First Payment

  1. Go to Payments → New Payment
  2. Select your contractor from the dropdown
  3. Enter payment details:
    • Amount: Payment amount in contractor’s currency
    • Description: “Invoice #001 - January 2024” or work description
    • Payment Method: Select method (defaults to contractor’s preference)
    • Payment Date: When to process (today or schedule for later)
  4. Review the payment summary:
    • Contractor name and email
    • Amount and currency
    • Exchange rate (if applicable)
    • Transfer fees
    • Total cost
  5. Click Submit Payment

Step 6: Track Payment Status

  1. Payment appears in Payments page with status Pending
  2. You’ll receive email confirmation
  3. Contractor receives notification
  4. Track status changes:
    • Pending → Processing → Completed
  5. Contractor receives payment (1-3 business days for bank transfer)

Step 7: Set Up Recurring Payments (Optional)

If you pay this contractor regularly:

  1. Open contractor profile
  2. Click Set Up Recurring Payment
  3. Configure:
    • Amount: Fixed payment amount
    • Frequency: Weekly, Bi-weekly, or Monthly
    • Start Date: Next payment date
    • Description: “Monthly retainer” or similar
  4. Click Save

Payments will process automatically on schedule.

Troubleshooting

Payment Failed

If your first payment fails:

  1. Check error message in payment details
  2. Common issues:
    • Invalid bank account number
    • Incorrect routing/SWIFT code
    • Insufficient funds
    • Currency not supported
  3. Fix the issue
  4. Click Retry Payment

Contractor Didn’t Receive Payment

  1. Check payment status (should be “Completed”)
  2. Verify bank details are correct
  3. Check with contractor’s bank (may take 1-3 days)
  4. Contact support if still not received after 3 days

Best Practices

  • ✅ Always verify bank details before first payment
  • ✅ Start with a small test payment if unsure
  • ✅ Keep contracts and tax forms on file
  • ✅ Use clear payment descriptions
  • ✅ Set up recurring payments for regular contractors
  • ✅ Export payment history monthly for accounting

Next Steps

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