Onboarding a contractor requires less information than onboarding an employee because contract work does not follow the same minimum wage laws, tax calculations, and payroll rules; contractors are responsible for calculating and paying their own state and federal taxes.
When you add or rehire a contractor to your payroll, they must already have an employee profile set up in your business's Vagaro account. You can then manually enter their information into Vagaro, or you can invite them to onboard themselves using their own device and on their own time. Contractors will also have to complete and submit a Form W-9 for your business's records, even if they already did the last time they worked for you.
If you terminate or remove a contractor from your payroll and hire them back, you must onboard them again.
Tip
If you migrated your Gusto account, you can quickly map their Gusto profile to their Vagaro employee profile.
Note
Employees who are rehired as contractors will need another employee profile to be set up and associated with their payroll profile. A separate profile keeps their paperwork distinct between being that of an employee or a contractor.
It may take two to three business days to verify newly added contractors on your payroll.
Prerequisites: This feature requires Vagaro Payroll and is available only to businesses in the US on the web, tablet, and Pay Desk.
When you invite a contractor to fill out their profile, they will receive an email from Vagaro asking them to enter their personal and business information, select how they want to receive their payments from you, and then sign and submit their completed Form W-9,
To invite a contractor to fill out their payroll profile:
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On the web, tablet, or Pay Desk, go to → → .
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Scroll down the screen to the Payroll tab.
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Select Add Employee to Payroll.
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In the Add Employees to Payroll popup, select the contractor(s) to add to payroll, then select Add Employees. Notice that the button also shows the total monthly payroll cost as you select contractors. The contractors you selected will be added to the Payroll list.
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At the end of the row of the contractor you just added, select Setup Payroll.
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In the What Kind of Employee? popup, select Contractor, then select Next.
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Select the contractor type, then select Next.
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Individual Contractor: An individual contractor is an independent professional who has agreed to work with a business under contract for one or more projects, usually for a short-term or specific time frame.
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Business Contractor: A business contractor is an independent professional who works on behalf of another business.
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In the Finish Setup popup, select Invite Contractor to Fill Profile to fill out the contractor's basic information, then select Next. The contractor will receive an email requesting they complete their payroll onboarding in Vagaro.
Tip
If a contractor who was invited to complete their payroll profile hasn't onboarded themselves by for their first pay day, you can Resend or Cancel an Onboarding Invitation to a Contractor and enter their information yourself.
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In the Contractor Added confirmation popup, select Done to return to the Payroll Configuration screen, then select Save.
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In the Payroll Configuration screen, set up the contractor's pay:
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If you selected more than one contractor to add to your payroll, repeat steps 5 to 11 to onboard the others.
If the contractor is with you or you already have their information, you can enter their personal and business information, then select or enter their payment details.
To add a contractor to your payroll by filling out their profile:
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On the web, tablet, or Pay Desk, go to → → .
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Scroll down the screen to the Payroll tab, then select Add Employee to Payroll.
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In the Add Employees to Payroll popup, select the contractor(s) to add to payroll, then select Add Employees. Notice that the button also shows the total monthly payroll cost as you select contractors. The contractors you selected will be added to the Payroll list.
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At the end of the row of the contractor you just added, select Setup Payroll.
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In the What Kind of Employee? popup, select Contractor, then select Next.
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Select the contractor type, then select Next.
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Individual Contractor: An individual contractor is an independent professional who has agreed to work with a business under contract for one or more projects, usually for a short-term or specific time frame.
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Business Contractor: A business contractor is an independent professional who works on behalf of another business.
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In the Set Up Profile popup, select Fill Contractor Profile Now, then select Next.
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Enter the contractor's Basic Info, then select Next.
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Enter the Contractor's Payment Details, then select Next.
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Direct Deposit: Pay the contractor by depositing their funds in their bank account. They can also opt to split their paycheck by entering detail for a second bank account, then choosing how much of each paycheck is to be deposited in each account.
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Check: Pay the contractor with a check for each pay period.
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In the Contractor Added confirmation popup, select Done to return to the Payroll Configuration screen, then select Save.
The contractor will receive an email requesting them to sign and submit their Form W-9.
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In the Payroll Configuration screen, set up the contractor's pay:
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If you selected more than one contractor to add to your payroll, repeat steps 4 to 11 to onboard the others.
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