How to Add a 1099 Contractor (Non-Payroll & Payroll Plans) #

Important #

Adding 1099 contractors is available on both Payroll and Non-Payroll plans. You do not need to be on the Payroll Plan to invite or pay a 1099 contractor.

Overview #

This guide explains how an admin can add a 1099 contractor in Friday, set pay details, and invite them to complete onboarding.

Eligibility Requirements #

To add a 1099 contractor:

• Admin access to Friday
• Any active plan (Payroll or Non-Payroll)

Note: 1099 contractors do not require W-2 tax filings, payroll tax calculations, or I-9 forms.

Add a 1099 Contractor #

Navigate to the Invite Screen {audience: admin} #

1. Log in to Friday as an admin.
2. Click Team in the left-hand menu.
3. Click Invite Employee (top-right).

Enter Contractor Details #

In the Employee Details section:

• Enter First Name
• Enter Last Name
• Enter Email Address
• Under Employee Role, select Contractor (1099)

⚠️ Selecting Employee (W-2) requires the Payroll Plan.

Select Start Date #

• Choose the Start Date.
• This determines when the contractor can begin being paid.

Pay Setup (No Payroll Taxes) #

In the Pay Details section:

• Select Work Location for reporting purposes, not payroll tax withholding.
• Choose Wage Type.

Pay Type Options #

Hourly

• Select Hourly.
• Enter hourly rate (example: $40/hour).

Flat Amount / Salary-Style

• Select Salary.
• Enter amount.
• Choose calculation frequency:

– Yearly
– Quarterly
– Monthly
– Semi-Monthly
– Weekly
– Bi-Weekly

For 1099 contractors, these settings define payment amounts only — no taxes are withheld.

Send Invite #

• Click Invite Employee.
• Contractor receives an email to complete onboarding.

Contractor Onboarding (Post-Invite) #

The contractor completes:

• Personal information
• W-9 tax form
• Payment method / bank details

✅ No W-4 or I-9 forms are required

Once completed:

• Admin is notified.
• Contractor can be paid through Friday.

FAQs #

Do I need the Payroll Plan to add a 1099 contractor? #

✅ No. 1099 contractors are supported on all plans.

Are payroll taxes calculated for contractors? #

❌ No. Friday does not withhold or calculate payroll taxes for 1099 contractors.

When can a contractor be paid? #

Once onboarding and payment details are complete, the contractor can be paid immediately.

Will Friday generate a 1099? #

Yes. When applicable, Friday uses the contractor data to support 1099 reporting.