Improvement
When the entity you want to pay is a company (that is not a sole proprietorship), it usually makes sense to add them as a vendor. Vendors can be paid with one-time payments but not added to payroll and won’t have detailed HRIS tracking that is associated with employees or contractors. If the contractor you are paying is set up as a sole proprietorship, then you can choose how to invite them based on the features you want to use.- Add the person as a contractor if you want to use any of the following features: Set up contracts, track compensation history, offer benefits, add them to payroll, and/or view them in people reporting.
- Add the person as a vendor if you don’t need any of the features above.
