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Onboard a Contractor

Onboarding a Contractor is similar to onboarding a W2 Employee but requires less information. Jobs and compensations are simplified for contractors since these type of workers are not subject to the same minimum wage laws, tax calculations, and payroll rules.

Contractors may be added during a company’s onboarding for payroll, or at any time after this initial onboarding is complete. A contractor can be setup in one of two ways:

  1. By Employer
  2. By Contractor (“Self-onboarding”)

Both can be done using Gusto’s pre-built Flows or using the Contractor APIs to build custom UI/UX.

To learn more about the difference between Contractor Onboarding by Employer vs Contractor Self-Onboarding review the Onboarding Method Comparison Guide.

The steps for both of these processes is the same

1. Create a Contractor

You can create an employee using the POST companies/{company_id}/contractors endpoint.

The example below shows a contractor "self-onboarding".

curl --request POST \
     --url https://api.gusto-demo.com/v1/companies/{company_uuid}/contractors \
     --header 'accept: application/json' \
     --header 'authorization: Bearer <<COMPANY_API_TOKEN>>' \
     --header 'content-type: application/json' \
     --data '
{
     "type": "Individual",
     "self_onboarding": true,
     "file_new_hire_report": "true",
     "wage_type": "Fixed",
     "first_name": "Jenna",
     "last_name": "Hunterson",
     "start_date": "2022-03-14",
     "email": "[email protected]",
     "work_state": "GA",
     "hourly_rate": "40.0"
}
'
const fetch = require('node-fetch');

const url = 'https://api.gusto-demo.com/v1/companies/{company_uuid}/contractors';
const options = {
  method: 'POST',
  headers: {
    accept: 'application/json',
    'content-type': 'application/json',
    authorization: 'Bearer <<COMPANY_API_TOKEN>>'
  },
  body: JSON.stringify({
    type: 'Individual',
    self_onboarding: true,
    file_new_hire_report: 'true,',
    wage_type: 'Fixed',
    first_name: 'Jenna',
    last_name: 'Hunterson',
    start_date: '2022-03-14',
    email: '[email protected]',
    work_state: 'GA',
    hourly_rate: '40.0'
  })
};

fetch(url, options)
  .then(res => res.json())
  .then(json => console.log(json))
  .catch(err => console.error('error:' + err));

2. Update Contractor's Information

a. Update a Contractor's Address

To update an contractor's address, you will first need to get the version of the address using the GET contractors/{contractor_uuid}/address endpoint. Once you have the version you can update the federal tax details using the PUT contractors/{contractor_uuid}/address endpoint.

curl --request PUT \
     --url https://api.gusto-demo.com/v1/contractors/{contractor_uuid}/address \
     --header 'accept: application/json' \
     --header 'authorization: Bearer <<COMPANY_API_TOKEN>>' \
     --header 'content-type: application/json' \
     --data '
{
     "version": "fe75bd065ff48b91c35fe8ff842f986c",
     "street_1": "39057 Broderick Light",
     "street_2": "Apt. 612",
     "city": "San Francisco",
     "state": "CA",
     "zip": "94107"
}
'
const fetch = require('node-fetch');

const url = 'https://api.gusto-demo.com/v1/contractors/{contractor_uuid}/address';
const options = {
  method: 'PUT',
  headers: {
    accept: 'application/json',
    'content-type': 'application/json',
    authorization: 'Bearer <<COMPANY_API_TOKEN>>'
  },
  body: JSON.stringify({
    version: 'fe75bd065ff48b91c35fe8ff842f986c',
    street_1: '39057 Broderick Light',
    street_2: 'Apt. 612',
    city: 'San Francisco',
    state: 'CA',
    zip: '94107'
  })
};

fetch(url, options)
  .then(res => res.json())
  .then(json => console.log(json))
  .catch(err => console.error('error:' + err));

b. Create a Contractor Bank Account

Creating a contractor bank account will automatically update an contractor's payment method from Check to Direct Deposit.

If you want to change the payment method you can use the PUT contractors/{contractor_uuid}/payment_method endpoint.

To create a bank account for a Contractor use the POST contractors/{contractor_uuid}/bank_accounts endpoint.
Note: We currently only support one bank account per contractor. Using this endpoint on a contractor who already has a bank account will just replace it.

curl --request POST \
     --url https://api.gusto-demo.com/v1/contractors/{contractor_uuid}/bank_accounts \
     --header 'accept: application/json' \
     --header 'authorization: Bearer <<COMPANY_API_TOKEN>>' \
     --header 'content-type: application/json' \
     --data '
{
     "name": "BoA Checking Account",
     "routing_number": "266905059",
     "account_number": "5809431207",
     "account_type": "Checking"
}
'
const fetch = require('node-fetch');

const url = 'https://api.gusto-demo.com/v1/contractors/{contractor_uuid}/bank_accounts';
const options = {
  method: 'POST',
  headers: {
    accept: 'application/json',
    'content-type': 'application/json',
    authorization: 'Bearer <<COMPANY_API_TOKEN>>'
  },
  body: JSON.stringify({
    name: 'BoA Checking Account',
    routing_number: '266905059',
    account_number: '5809431207',
    account_type: 'Checking'
  })
};

fetch(url, options)
  .then(res => res.json())
  .then(json => console.log(json))
  .catch(err => console.error('error:' + err));

3. Mark Contractor as Onboarded

With the basic details, address, and payment method complete, the final step is to mark the contractor as onboarding_completed. This is done using the PUT contractors/{contractor_uuid}/onboarding_status endpoint. You will want to change the status to onboarding_completed in the body.

curl --request PUT \
     --url https://api.gusto-demo.com/v1/contractors/{contractor_uuid}/onboarding_status \
     --header 'accept: application/json' \
     --header 'authorization: Bearer <<COMPANY_API_TOKEN>>' \
     --header 'content-type: application/json' \
     --data '
{
     "onboarding_status": "onboarding_completed"
}
'
const fetch = require('node-fetch');

const url = 'https://api.gusto-demo.com/v1/contractors/{contractor_uuid}/onboarding_status';
const options = {
  method: 'PUT',
  headers: {
    accept: 'application/json',
    'content-type': 'application/json',
    authorization: 'Bearer <<COMPANY_API_TOKEN>>'
  },
  body: JSON.stringify({onboarding_status: 'onboarding_completed'})
};

fetch(url, options)
  .then(res => res.json())
  .then(json => console.log(json))
  .catch(err => console.error('error:' + err));