Pay A US Contractor
Go to Settings → Users → Payroll.
Select Contractors from the dropdown menu in the top right.
Click Pay Contractors.
Select a Payment Date.
The default date shows the earliest pay day for Checks.
Payrolls and contractor payments paid via direct deposit have the same processing timeline, usually two days.
If you need to pay your team sooner, you can pay with a physical check and distribute externally.
Paying on autopilot/recurring payments are not available for contractor payments.
A note on pay dates:
If you choose the default date or any time after that, you can pay by direct deposit or check.
If you select a date before the default date, you can pay by check only.
If the payment has already been made, and you’re entering it for tax reporting purposes, you’ll want to record it as a “Historical Payment”.
Select a Payment Method.
Enter the Contractor's Hours.
For more information on finding how many hours they have worked in a given period see here.
Click Process Payment.
Heads up: CleanCloud Payroll will not automatically sync a Contractor's hours in a given pay period like they do for W2 Employees.
Cancel A Contractor Payment
Cancel A Contractor Payment
Certain contractor payments can be canceled or adjusted in CleanCloud Payroll without having to contact us for help. If you only see the option to cancel a contractor payment, this means the payment has not fully processed, and you'll need to cancel and rerun the payment to make any changes.
How To Cancel or Adjust A Contractor Payment
Go to Settings → Users → Payroll.
Select Contractors from the dropdown menu in the top right.
Next to the Contractor, if a payment can still be canceled, there will be a tag letting you know. If the tag doesn't appear, contact us so we can assist with the next steps.
Contractor Payment Reversals - General Info
Reversing before the check date
We’ll return the funds to your bank account within a few business days.
Reversing on or after the check date
We’ll correct the reporting, but you’ll need to recoup all funds (direct deposited or issued by check)–banking regulations prevent Gusto from recovering the funds on your behalf.
Troubleshooting A Wrong Bank Account
Bank Error Received
Update your Contractor's Bank Account Information within CleanCloud.
Go to Settings → Users → Manage User Accounts.
Click Manage Gusto Contractors.
Select the ⫶ Edit Contractor next to the relevant staff member.
Click Payment Details.
Update the Routing Number, Account Number & Account Type accordingly.
Click Save & Continue.
Once updated, they should receive their funds within 1-3 Business Days.
No Bank Error
If the transaction went through and you did not receive a bank error, the funds may have landed in the wrong bank account. Because Gusto is unable to retrieve the funds from the incorrect bank account, you’ll need to call the bank with the funds directly to address the issue.
Record Historical Contractor Payments (Paid Outside of Gusto) For 1099 Reporting At The End of The Year
Record Historical Contractor Payments (Paid Outside of Gusto) For 1099 Reporting At The End of The Year
If you've already paid a domestic contractor outside of CleanCloud Payroll, you can still add the payment to Gusto for reporting purposes—you'll want the contractor's 1099 for the year to reflect all payments.
Important Reminders
Historical payments alone will not generate filings—we'll create 1099s once the company has:
A signed 8655 on file, and;
Submitted at least one payment to any contractor or employee through payroll.
These payments must be submitted before Gusto's end-of-year deadline for entering prior year information.
Adding Historical Payments
The deadline to enter historical contractor payments for the previous year is in early January.
If you're adding a payment for a previous year and a Form 1099 has already been filed, you'll need to generate a corrected Form 1099-NEC.
If Gusto did not handle your tax filings for the previous year, you'll need to generate and file a new Form 1099 outside of Gusto.
How To Add Historical Payments
Go to Settings → Users → Payroll.
Select Contractors from the dropdown menu in the top right.
Click Pay Contractors.
Select a Payment Date.
Select 'Historical Payment' from the Payment Method dropdown menu.
Enter the number of worked hours, wages, or other additional earnings that were paid.
Click Process Payment.
View Or Cancel A Historical Contractor Payment
Go Settings → Admin → Payments & Finances → Payroll.
Click on the dropdown menu by Gusto Onboarding Form.
Select Contractor Payments.
Click Open.
To cancel a Contractor Payment, select the Payment Date, click ⫶ and Cancel.