Subcontractor Vendor Setup
There are two types of vendors:
- "Subcontractors" or 3rd party staffing agencies - In the case of the 3rd party agency, pay for subcontracted employees will be consolidated and your staffing company will pay the subcontractor. That agency is responsible for paying and preparing W2s for the employee or producing a 1099.
- "1099 Employees" or independent contractors - In the case of the 1099 employee, your staffing company pays the employee but the employee is responsible for their own 1099. For Information on these, click here.
In both cases, the client is not responsible for the taxes of the 1099 employee or employees of the subcontractors.
*Note* Within Enterprise, the difference between 1099 employees and staffing agencies is called a "Pseudo AIdent." Staffing agencies have one; 1099 employees do not.
Creating a Vendor
To create a vendor, go to 'all options' and select 'vendors':
This will bring you to vendor record in Enterprise. Select the '+' icon in the upper right-hand corner to create a new vendor:
This will open the 'Vendor Quick Add' wizard. Below are the required fields for setting up the subcontractor/3rd party staffing company:
- Fill in the 'Company ID' and the 'Full Company Name' with the name of the company. The 'Company ID' has a limit of 15 characters.
- Company Type List: select "Staffing" for a staffing company or subcontractor.
- Pay Beginning: This field will prevent cutting any checks to the vendor until the outlined day.
- Pay Delay: If you would like to delay transactions from pulling into a consolidated check for the subcontractor based on bill date you may utilize this field. Otherwise select "0"
- Fill in the Corporate Address: If the local address and remittance address are the same as the corporate address, you can select the 'copy' icon so the local and remittance addresses will fill in automatically. If they are not the same, fill in the local & remittance addresses manually. Once all required fields are satisfied, select the 'Save' icon.
You will now be brought to the 'details' page for the newly created Subcontractor/staffing company.
- For staffing agencies, on the right-hand side under 'government req' uncheck "Generate 1099," depending on requirements.
*Subcontractor/staff agency only* Under Vendor/Subcontractor Setup on the left, in the field Pseudo AIdent, click the profile icon to create a Pseudo AIdent. Then, click it again to view the Pseudo Aident's record (remember Pseudo Aidents are only for the subcontractor/staffing agency).
The Pseudo aident will be used as a device to issue consolidated checks to the subcontractor.
WARNING: The new vendor will only show in drop-down lists after your login credentials have been refreshed, so either refresh your hierarchy or log out and back in again.
Linking an Employee to an Subcontractor/staffing agency
Now that the vendor record exists, employee records can be linked to that vendor. Those employee records will be assigned to orders just like a W2 employee but will have visible markers on its employee record as well as its assignments that will help identify its status. Additionally, transactions for this record will experience payroll differently and will be processed through a 'Subpush' Payroll run.
To begin, create an employee record in the same way that you would for a W2 employee. Because the client is not responsible for taxes, the SSN and address are not important. (The SSN may be filled in with all 0's.)
Under the 'details' page on the new employee, on the right-hand side, is a field for 'Vendor'. This field will link this employee to the employee record from before. Select the vendor that corresponds to this employee.
Under the Avatar will appear an icon labelled "Subcontractor."
*Note* If creating an assignment for the employee without filling in the Vendor field on the employee record, the assignment will be for a W2 employee and cannot be changed. The assignment will have to be closed, the vendor linked and a new assignment will have to be created from a record with the correct information.
*Note* When creating an assignment for an employee with a vendor, any assignments created for the employee will not have the W2 box checked under their assignment details record.
Assignment Financial Details
The typical definition of pay rates and bill rates differ for orders/assignments associated with subcontractors. Since this is the case, look at the screen shot below and define how these fields will be used.
- Bill Rate: When working with subcontractors the bill rate will still be what is invoiced to the client the employee works for.
- Pay Rate: When working with subcontractors the pay rate will now be what is paid to the subcontractor.
Linking a SubContractor/Staffing Agency to a Contact Record
*Note- This section is only for users who are utilizing the Vendor Management Portal in WebCenter. For more information about the vendor portal or to see how a vendor contact interacts with it, check out: Vendor: Vendor Management Portal. Ask an account manager to see if this is available for you
For staffing agencies and/or a subcontractor, a contact record should be created to give them access to the vendor portal. For more information about the vendor portal or to see how a vendor contact interacts with it, check out: Vendor: Vendor Management Portal.
To begin, create a contact record. Under the contacts details section, fill in the 'Vendor' field with the staffing agency. Select the 'Save' icon:
From the actions menu, select 'Manage Web User Account' to invite the contact to WebCenter. The only WebCenter role available is Vendor:
Two options exist for giving the contact credentials to WebCenter.
- Invitation via email
- Manual creation
In either case, a 'role' must be selected. In the contact record select a vendor WebCenter role. If customer contact roles are available, double check that the vendor was linked to the contact record.
*Note* The contact should not be linked to both a customer and a vendor; if they are, you will get an error.
Distributing Staffing Agencies to Customers and Orders
*Note* This section is only for users that are using the Vendor Management Portal in WebCenter. For more information about the vendor portal or to see how a vendor contact interacts with it, check out: Vendor: Vendor Management Portal. Ask an account manager to see if this is available.
For staffing agencies/subcontractors, link orders to the customer.
To link them to a customer, go to the customer 'details' section and navigate to the 'vendor management' page. Add the staffing agency with the '+' icon.
This will open the 'add vendor to company' wizard:
- Choosing a 'Job Title' will limit the orders that the vendor is automatically applied to.
- The' Order Delay (Hours)' specifies the amount of time the client has to fill the order before the vendor has access to it.
- 'Max Candidates per Req' will determine how many candidates the contact can select per order.
When you create orders for the customer, the status of the vendor will update from "Waiting for distribution" to "Distributed" after the allotted delay.
If the delay is 0 hours, then you must manually update the status to "Distributed." To edit the vendor on the order, select the 'edit' icon.
When editing a vendor on the order, the following fields can be set:
- The Max Candidates Per requisition determines exactly how many employees are provided by the vendor on the order. Per customer specification, the vendor will only be able to provide this many employees, despite the number on the order.
- If you only want to link the vendor to specific orders, then you can add the staffing agency under Order Details --> Vendors.
- When the vendor contact sees the order in WebCenter, he will have the ability to Accept or Reject w/Reason. The service rep will be alerted of the decision by email, and the vendor's status on the order will be updated. The vendor can create employees under the Employee tab and can then return to the order to add the employee to the order. Their creation/addition is all reflected in Enterprise.