Paying Contract Workers with Knit

Create a new income type for contractors

How you set up your contractor's income type depends on how you would like to pay them (ie set amount, per hour etc.)

Paying a contractor a set dollar amount:
  1. Open the Run Payroll Tab
  2. Select Income Type
  3. Select the Create New Income Type 
  1. The Add Income Type window will open, enter a description for the income type
  2. select "Contractor" from the income type drop-down menu.
  3. Select Create
Paying a contractor a set amount while tracking working hours:
  1. Open the Run Payroll Tab
  2. Select Income Type
  3. Select the Create New Income Type icon in the top right corner
  4. The Add Income Type window will open, enter a description for the income type
  5. Select Custom Income Type from the income type drop-down menu
  6. Select Amount from the Payment Unit Drop-down menu, select Yes from the Record Hours drop-down menu
  7. Select the Payable, EHT Exempt & WSIB/WCB Exempt Checkboxes
  8. Select Create
Paying contractors an hourly rate:
  1. Open the Run Payroll Tab
  2. Select Income Type
  3. Select Create New Income Type icon in the top right corner
  4. The Add Income Type window will open, enter a description for the income type (ie Hourly Contract Worker)
  5. Select Custom Income Type from the income type drop-down menu
  6. Select Hour from the Payment Unit Drop-down menu
  7. Record the hourly rate you wish to pay your contract worker
  8. Select the Payable, EHT Exempt & WSIB/WCB Exempt Checkboxes
  9. Select Create

(Note: If you would like to pay another contract worker a different hourly rate, you will need to create a separate income type)

Adding the income type to the contractor's profile:

  1. Open the People tab and locate the contractor from the list of employees
  2. Open the Compensation tab 
  3. Scroll down to the pay rate section and select the green pencil icon. Enter the 0 for the employee's pay and vacation rates
  4. Scroll down to the additional income section and select the green plus icon. The Add Recurring Income window will open
  5. Select your new contractor income from the "Additional Income" drop-down menu. If they get paid a default amount per pay period, you can enter it in the "Default Amount Per Pay Period" field
  6. Select Save

Running payroll for contractors

When you go to run a payroll for your contractor, there will be a column for the new income type on the Input Payroll screen. If the income type is not displaying, select the orange plus icon next to Earnings and select Contractor from the drop-down list.

If you keep track of your contractor's working hours you will have the option to enter hours along with the amount paid.

If you pay your contractors an hourly rate, enter the amount of hours in the hours field and the dollar amount will be calculated automatically.


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