Adding and managing people

Onboarding employees and contractors, the records that must be right before the first payment, and handling changes, leave, and departures.

How-toFor Business owners, Bookkeepers, Firm staff

Employee or contractor

This decision has to be made before anything else, because it determines the tax treatment, the forms, and the liabilities. It is a legal test based on the working relationship — how much control you exercise, who provides the tools, whether the work is central to your business — not a preference either party can choose.

Onboarding an employee

1
Create the person record with legal name, address, and start date.
The address determines state and local withholding, so a stale address means wrong tax.
2
Send them self-onboarding.
They enter their own W-4 details, bank details for direct deposit, and personal information, which keeps sensitive data out of email and removes transcription errors.
3
Set compensation.
Salary or hourly rate, and — critically — whether they are exempt or non-exempt from overtime.
4
Assign worksite, department, and any dimensions used for cost allocation.
5
Enrol benefits and set deductions.
6
Confirm the record is complete before the first run.
Payroll flags incomplete records, but it is better to fix them before the run than during it.

Changes, leave, and departures

Change	What to do
Pay rate change	Record it with an effective date so the run splits the period correctly.
Address change	Update immediately. It may change state withholding and create a new worksite obligation.
New W-4	Update withholding. Employees can submit a new W-4 at any time.
Time off	Record it so accruals and paid leave are reflected in the run.
Garnishment order	Record it against the person. Orders have legal priority rules — do not apply them ad hoc.
Departure	Process the dismissal, including any final pay rules your state imposes on timing.
Rehire	Use the rehire path rather than creating a second record, so year-to-date figures stay correct.

Common questions

Can employees see their own pay information?

Yes — each person has a self-service view of their pay history and documents, which removes most routine payroll questions from your inbox.

How do I pay someone a bonus?

Add it to a regular run, or process an off-cycle run if it needs to be paid separately. Supplemental wages may be subject to different withholding rules — the run applies them, but be aware the net will not look like a normal cheque.