What’s the Difference Between a Vendor vs. Contractor in Patriot Software?
If you have both Accounting and Payroll with Patriot Software, you will be able to manage both your Vendors and your Contractors.
Your vendors are companies that you pay in the Accounting software as payables. These are entities such as your suppliers, utility companies, etc. You do not pay your vendors through payroll.
A contractor is a specific individual that you pay for services. This contractor may be paid through either our Payroll software or Accounting software and will be issued a Form 1099 at the end of the year. You should give this person a Form W-9 to complete with their individual Taxpayer Identification Number or Social Security Number. For more details, see our blog article What is Form W-9?
Unlike employees, you do not control the contractor’s work or provide the tools they need to get the job done. For more info about the difference between contractors and employees, see our blog article Independent Contractor vs. Employee Classification.
Based on the Patriot Software products you have, here is how you will manage your vendors and contractors:
|Your Patriot Products||Vendors||Contractors|
|Accounting Only||Paid through Accounts Payable|| Treated as a Vendor, |
Paid through Accounts Payable
|Accounting and Payroll||Paid through Accounts Payable||Paid through Accounts Payable or Paid in Payroll|
|Payroll Only||N/A||Paid in Payroll|