Paying a W-2 contractor's pay record through payroll

When a W-2 contractor's pay record is posted, it goes to payroll and is paid in the worker's next payroll run, with tax withheld.

Under Contractor Pay, choose Post on a pay record with the payroll route. The record changes to posted and waits for payroll. It no longer creates a payroll run of its own.

• The next payroll run that includes the worker pays the pay record's hours and gross as a regular-pay line. This can be the pay group's regular run, or an off-cycle run for that worker alone. Federal and state income tax, social security and Medicare are withheld as on any other pay.
• When the run is calculated, the pay record shows which payroll run paid it. If that run is later reversed or cancelled, the next run pays the record again.
• The worker must already be an employee in HRMS. The pay record must have hours on it.
• For a 1099 or corp-to-corp contractor, posting still creates one supplier invoice. That invoice is now dated the pay date you enter, or the last day of the pay period if you leave it empty. It is no longer dated the day it was posted.