Is there an easy way to manage subcontractors on your job site? In this blog post we’ll show you how to easily create A/P invoices to pay your subcontractors. Abio also automatically calculates their union dues and WCB remittances.

Employees

An employee’s employment type controls how they are paid. Employees (employment type ‘Y’) are paid through the payroll system. EI, CPP, income tax, WCB, pension and union dues are all calculated and deducted from their pay. Plus, Abio generates T4s for them at year end, and ROEs (Record of Employment) when they are laid off. When cheques are issued, employee cheques are added to the print queue and will print on cheque stock or be EFT’d (electronic funds transfer) to their bank.

Individual Subcontractors

Abio allows you to pay subcontractors like employees, while still treating them as independent workers. This is useful when your union contract mandates this treatment for their workers. They are subject to union dues, but are otherwise self-employed.

Timesheet hours for subcontractors (employment type ‘S’) are entered into Abio the same way timesheets for employees are entered. Likewise, cheques can be created in the same run. How those cheques are treated diverges when deductions are calculated and cheques are printed. Subcontractor cheques don’t get queued for printing as payroll cheques. Instead, a subcontractor invoice is created for the subcontract vendor specified for the employee. Once approved, an A/P cheque is issued, and that cheque is queued for printing or EFT transfer as an A/P cheque.

Your subcontract style employees won’t be issued ROEs or T4s. Nor will EI, CPP, or income tax be assessed against their pay. But, they will be paid easily and automatically, without the hassle of having to creating and submitting invoices.

Subcontract Companies

If you hire out some aspects of your construction project, that crew will be managed by the company they work for. Instead of having to track each of their hours separately, you’ll be invoiced by their company. Post their invoice to the current job. The cost centre you post their invoice to will depend on the kind of work they are providing. The cost type will be ‘S’ubcontract or ‘L’abour.

Posting those invoices to Labour gives you the opportunity to use Abio’s Job Markup mechanism to add overhead markups before passing the cost onto clients.