Shared Resources - Creating Independent Contractors

To create an independent contractor (a business partner that is an individual or sole proprietorship), first create the business partner record. Then, create an associated contact record and an associated vendor. Together, these three records detail an independent contractor.

I) Create Business Partner Record

To create a business partner, refer to Shared Resources - Create Business Partner.

Be sure to specify the independent contractor’s account information, required for voucher creation, on the Bank tab to make it available in the vendor’s Accounting tab. Also, if the independent contractor’s tax registration number is their Social Security Number, check the 'SSN' box and enter their SSN in the Registration Code field.

II) Create Contact Record

With the business partner record created, click the [Contacts] button to launch the Contacts screen. For the new contact record, check the ‘Independent Contractor Reporting’ checkbox to set the business partner type to “Independent Contractor”, and information about the independent contractor is on the business partner record and its associated contact and vendor records.

For details about the Contacts screen, please refer to Opportunity Management - Contacts.

III) Create Vendor Record

With the business partner and contact records created, the vendor record can now be created. The vendor record’s information is used throughout the AP module. For details about creating a vendor, please refer to Shared Resources - Creating a Vendor.

1099-MISC FORM & California’s Independent Contractor Reporting

Independent contractor records are necessary to file federal 1099-MISC forms. For the state of California, these records are also required to report the independent contractors’ information to California’s Employment Development Department (EDD).

Only one contact may have the ‘Independent Contractor Reporting’ checkbox checked at a time. If an error was made and a different contact should have the checkbox checked, enter the new contact and check the checkbox. A warning will display that another contact has this checkbox checked and there will be the option to change the contact.

View & Verify List of Independent Contractors via Report

To view and verify the list of independent contractors in the system that are relevant to California’s Independent Contractor Reporting requirement, use the AP module’s Independent Contractor Report.