Skip to main content
All CollectionsFor Customer Unified Payroll and HR
How to add and onboard a contractor
How to add and onboard a contractor

Learn all the steps and options for adding and onboarding contractors

Updated over 4 months ago

Add team member

To add a new contractor, please follow these steps:

1. Go to People Add person

  • Fill in basic information (name, country, email).

  • Select "Contractor" for the employment type.

  • Optionally add a title, manager, and department.

2. Select options for onboarding

  • Send contract should be selected unless you only want to add the contractor for informational tracking in the Plane HRIS. This initiates the standard process of establishing a contract and onboarding the contractor. All contractors who are onboarded will get set up for one-time payments.

  • Add to payroll should be selected when you want to add the contractor to recurring payroll in addition to enabling one-time payments.

3. Save and continue. You’ll be able to manage the onboarding process on the Onboardings page.

Complete onboarding tasks

The onboarding process is organized and summarized using milestones: Prepare contract, Sign contract, Set up payments, and Collect compliance documents.

Each milestone has one or more tasks that are either immediately available or are dependent on other tasks. You can complete available tasks in any order. Learn more about the tasks for each milestone below.

1. Prepare contract

Set compensation

A contractor’s wage type can be hourly, daily, weekly, monthly, or yearly.

Assign pay schedule

When hourly workers are assigned to a pay schedule, payroll items will be pre-populated with 0 hours for each pay period. You’ll need to enter and approve hours before the approval deadline for payments to be processed.

For all other wage types, payment amounts are calculated based on the pay schedule/frequency of pay. Learn more here

Set start date

The start date represents the contractor’s first day at work. If you are migrating a contractor from another payment system, the start date may be a date in the past.

The start date is useful for tracking purposes but is also used to calculate prorated pay for contractors with a non-hourly wage type who are assigned to a pay schedule.

Collect contractor business and address details

This task establishes whether the contractor is registered as an individual or a business and collects relevant address information. For contractors who are registered as a business, a business name and address are required.

You have the option to enter this information yourself or assign the task to the contractor.

Prepare contract

You can use Plane's locally compliant contract or upload a signed contract of your own. When choosing Plane's contract, you need to define the scope of work and effective date. You’ll also have options for:

  • Attaching additional documents / addendums

  • Adding an additional clause

  • Adding a termination date

  • Changing the notice period for contract termination from the default of 10 days

💡 Please note: This task is currently dependent on "Collect contractor business and address details" because it was implemented incorrectly. This dependency will be removed in the near future.

2. Sign contract

Review and approve contract

This task gives you an opportunity to review all the details of the contract and make changes if necessary.

Sign contract

This task is used to sign the contract. Sign when ready and send to the contractor for signature.

The contractor will receive an email notification letting them know the contract is ready for signature.

💡 Please note: Contractors will not be able to view or sign their contract if they have not completed their account setup.

3. Set up payments

Collect contractor payment information

This task is used to collect the payment method/bank account details for the contractor. You can enter this information yourself or assign it to the contractor.

4. Collect compliance documents

Collect Form W-8 or W-9 for tax reporting

This task is used to collect the appropriate W-8BEN/W-8BEN-E or W-9 form. You can upload a completed form or to assign the task to the contractor.

5. Inviting contractors to Plane

The steps above give you the flexibility to assign several tasks to the contractor. For example, it is usually easier to have the contractor provide their business and address details, set up their own bank account, and complete Form W-8 or W-9 through Plane. As soon as you assign any one of these tasks to the contractor, the contractor will be invited to get set up on Plane.

The contractor will also be invited to join Plane if they haven’t already been invited when you send the contract for signature.

Contractor tasks

When the contractor is invited to get set up on Plane, they will see a similar but simplified set of milestones and tasks.

Contractors are always assigned tasks to collect personal information such as preferred name, date of birth, and address information. As mentioned above, you can also assign specific tasks to the contractor to speed up onboarding.

Only when all onboarding tasks have been completed will the contractor be able to access the full set of Plane features to submit payment requests, view payments, create expense reports, and more.

6. Archive onboarding tasks

The final step to onboarding is archiving completed tasks. Once you've archived the completed tasks, the contractor will no longer appear on the Hiring page.

Questions? We’re here to help! You can find more of our guides here, reach out to us at support@plane.com, or use Plane's in-app chat.

Did this answer your question?