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Scheduling & Recording US-Based Contractor Payments

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This article specifically refers to how to schedule and record payments for contractors in Justworks. For more information on how to classify a contractor, view the Contractors page.

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Scheduling US-Based Contractor Pay

Justworks makes scheduling and recording payments to contractors easy. 

Click Pay > Make a payment. Then find the pay type for Contractor Pay, and select Schedule Payment.

The Pay > US Payments page showing a 'Contractor pay' option with a description: 'Use this pay type to pay an individual that provides goods or services to your company and does not have an Employer Identification Number (EIN).' A 'Domestic' dropdown is visible in the top right.
From the US Payments page, select the Contractor pay option to begin scheduling a payment to a US-based contractor.

Next, select the pay date. Once you select a date, you'll see which day funds will be debited from your company's bank account. On the same screen, enter a note (visible on the contractor's paystub), select each recipient, and enter the amount to pay them.

The Delivery preferences screen showing a Pay date field set to 07/15/2026, with a note that 'Funds will be debited from your account on Jul 14, 2026.' An optional Note field contains the example text 'Invoice #52', with a character count of 11/256.
On the Delivery preferences screen, select the pay date and optionally add a note (up to 256 characters) that will appear on the contractor's paystub. The debit date is automatically calculated and displayed above the date field.
A contractor selection screen with Sort by 'Member type' dropdown, a 'Search for contractor' field, a Filter button, and an Active filter tag applied. One result is shown: Patrick Abbott, Sales Rep, listed under 'Contractor (1099) 1 person,' with a payment amount of $750.00 entered and a 'Copy to all' link.
Use the search, sort, and filter tools to find the contractor(s) you want to pay, then enter the payment amount for each. The 'Copy to all' link lets you apply the same amount to multiple contractors at once.

Once you review and submit, you'll see a confirmation page. This page will let you know when your company’s bank account will be debited for this payment, as well as the last time you’ll be able to cancel or edit the payment.

The Contractor pay confirmation page showing a 'Success!' banner with three key dates: edit payment by Thursday July 9 2026, account debited on Friday July 10 2026, and contractor receives payment on Wednesday July 15 2026. Below are panels summarizing debit and edit deadlines, a cancellation notice, and a Payment summary showing 1 payee and $750.00 amount entered.
After submitting, the confirmation page displays your payment's key dates—including when your account will be debited and the deadline to edit or cancel. Review the Payment summary and note the cutoff time (1:59PM Eastern on July 9, 2026 in this example) for making any changes.

Admins with Make a Payment permissions will also receive an email confirmation of the payment being successfully submitted.

Recording External Payment Amounts

If you’ve paid this contractor outside of Justworks, you can add that payment amount to their account at any time. From Manage > Contractors, you can click on their profile, and scroll down to settings.

Here, you’ll let us know whether or not you want us to file a 1099 for them, as well as any external payment amounts that need to be included on their 1099.

1099 Preview Report

At the end of each year, you can view a preview of what information will be included on your US-based contractors' and vendors' 1099s by navigating to the Report > 1099 Preview Report.

You will be able to view and download a spreadsheet that includes the breakdown of what will be in each box of the 1099 through Justworks. While the report in-app will show all US-based contractors and vendors, downloaded reports will only show contractors and vendors whose 1099 filing status is currently set to Justworks to File.

 

Disclaimer

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.

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