How to Use Payroll Contractor Invoices

This guide explains how to manage contractor invoices in Awditify — creating invoices for independent contractors, generating them from time entries, and tracking payment status.

Getting to Contractor Invoices

1. Open the client you want to work with.
2. In the left sidebar, under Payroll, click Contractor Invoices.

The Contractor Invoices Page

Tabs

Three tabs organize your invoices:

• All — every contractor invoice.
• Draft — invoices still being prepared.
• Sent — invoices that have been sent to the contractor.
• Paid — invoices that have been paid.

ℹ Info: Contractors are different from employees. Contractors are set up as employees with employment type "Contractor." They do not have payroll taxes deducted — they invoice for their services.

Sorting

Use the column headers to sort the invoice list by:

• Date (default: newest first)
• Contractor (alphabetical)
• Amount (largest first)

Click the sort icon to toggle between ascending and descending.

The Invoices Table

Each row shows:

• Invoice Number — the unique invoice identifier.
• Contractor — the contractor's name.
• Period — the start and end dates of the billing period.
• Invoice Date — when the invoice was created.
• Due Date — when payment is due.
• Subtotal — the pre-tax amount.
• Tax Amount — GST/HST or other tax applied.
• Total — the full invoice amount.
• Status — Draft (gray), Sent (blue), or Paid (green).
• Actions — View, Download, Send, Mark Paid, Delete.

Creating a Contractor Invoice

1. Click Create Invoice at the top right.
2. Fill in the form:

Invoice Header

• Contractor (required) — select from the dropdown. Only employees with employment type "Contractor" appear.
• Invoice Date (required) — defaults to today.
• Due Date (optional) — when payment is expected. Defaults to 30 days from the invoice date.
• Period Start / Period End (optional) — the date range this invoice covers.
• Tax Rate (optional) — enter a percentage (e.g., 13 for HST in Ontario). Leave blank for no tax.
• Notes (optional) — any notes that appear on the invoice.

Line Items

Add one or more line items describing the work:

• Description (required) — e.g., "Web Development — March 2026" or "Consulting Services."
• Quantity — typically hours worked.
• Rate — the hourly or unit rate.
• Amount — calculated as Quantity × Rate.

Click Add Line Item to add more rows.

3. Click Save.

✓ Tip: The tax amount is auto-calculated as Subtotal × Tax Rate. The Total is Subtotal + Tax Amount.

Generating an Invoice from Time Entries

Instead of manually entering line items, you can generate an invoice from a contractor's unbilled time entries:

1. Click Generate from Time.
2. Fill in the dialog:

• Contractor (required) — select the contractor.
• Period Start / End (required) — the date range to pull time entries from.
• Include Hours — toggle on to include the hours detail in the line items.

3. The system retrieves all unbilled time entries for that contractor within the date range.
4. A preview shows:
   • Total Hours and Total Amount from the time entries.
   • Default Rate — the contractor's hourly rate.
5. Review the preview and click Generate Invoice.

The invoice is created with line items automatically populated from the time entries. The time entries are then marked as invoiced so they won't be pulled into future invoices.

Viewing and Managing Invoices

View

Click the View action (eye icon) on any invoice to see its full details:

• Invoice header with dates and contractor information.
• All line items with descriptions, quantities, rates, and amounts.
• Subtotal, tax, and total breakdown.
• Status and payment history.

Download PDF

Click the Download action to export the invoice as a PDF. The PDF is formatted as a professional invoice ready to send to the contractor.

Send

Click the Send action to email the invoice to the contractor. The status changes from Draft to Sent.

Mark as Paid

When the contractor pays the invoice:

1. Click the Mark as Paid action (or open the invoice and click Record Payment).
2. The status changes from Sent to Paid.
3. The payment date is recorded.

Delete

Click the Delete action to remove a draft invoice. Sent and paid invoices cannot be deleted.

⚠ Warning: Only draft invoices can be deleted. If you need to cancel a sent invoice, contact the contractor and mark it appropriately. Do not delete paid invoices — they are part of your financial records.

Invoice Statuses

Contractors vs. Employees

ℹ Info: Set the employment type to "Contractor" when adding the person as an employee. This ensures they appear in the contractor dropdown for invoicing and are excluded from regular payroll runs.