--- title: Adding a Contractor (Withholding Tax) to the Thankyou Payroll System description: Contractors are not employees and are set up differently. This article will show you which settings to use when paying a contractor on our system. --- [Skip to content](https://help.thankyoupayroll.co.nz/en/adding-a-contractor-withholding-tax#main-content) English Show submenu for translations [More support](https://help.thankyoupayroll.co.nz/en/kb-tickets/new?hsLang=en) ![TYP\_Logo-09-1.png\]](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/TYP_Logo-09-1.png?height=40&name=TYP_Logo-09-1.png) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://help.thankyoupayroll.co.nz/en/kb-tickets/new) - [Visit our website www.thankyoupayroll.co.nz](https://www.thankyoupayroll.co.nz/) [Visit our website www.thankyoupayroll.co.nz](https://www.thankyoupayroll.co.nz/) Kia ora! How can we help you? - There are no suggestions because the search field is empty. 1. [Help Centre](https://help.thankyoupayroll.co.nz/en?hsLang=en) 2. [Contractors](https://help.thankyoupayroll.co.nz/en/contractors?hsLang=en) # Adding a Contractor (Withholding Tax) to the Thankyou Payroll System ## Contractors are not employees, so they are not entitled to employee leave. This article will show you which settings to use when paying a contractor on our system. *Updated: October 2025* Contractor invoices are usually paid as a business expense by the Finance Department and do not generally go through payroll. If you want to set up a contractor in the Thankyou Payroll system, this article will help you understand how to do this correctly. ![Info - Blue Block (1)](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/CalloutIcons/Info%20-%20Blue%20Block%20(1).png?width=50&height=50&name=Info%20-%20Blue%20Block%20(1).png)The Thankyou Payroll system can accommodate individuals who are  contractors with **Withholding Tax (WT) tax code**(GST registered or not). Our system should no be used to pay contractors with no WT being deducted.  \* They MUST  have a **WT tax** **code** to be entered into our system. Let's explore what setting up a contractor in our system would look like. ![Pro Tip - Blue Block](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/CalloutIcons/Pro%20Tip%20-%20Blue%20Block.png?width=52&height=52&name=Pro%20Tip%20-%20Blue%20Block.png)The button you select in our system will display in a darker colour. This will help you to identify the settings chosen for that profile. --- --- Contractors can also be paid by using specific pay types set up in the system. To find out [how to set up pay types, follow this link](https://help.thankyoupayroll.co.nz/en/creating-a-custom-pay-type-for-allowances/deductions?hsLang=en). - [Getting Started](https://help.thankyoupayroll.co.nz/en/getting-started?hsLang=en) - [Login Experience](https://help.thankyoupayroll.co.nz/en/login-experience?hsLang=en#main-content) - [Quick Answers](https://help.thankyoupayroll.co.nz/en/login-experience?hsLang=en#quick-answers) - [Account Settings](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#main-content) - [Quick Answers](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#quick-answers) - [Business Account Settings](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#business-account-settings) - [User Profile Settings](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#user-profile-settings) - [Pay Support Settings](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#pay-support-settings) - [Account Integration](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#account-integration) - 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