Payroll and contractors

Payroll works out what each person on your team earned for a period, from commission, hourly pay, salary, tips and booth rent. Use it at the end of each pay period, and at year-end for contractor 1099-NECs.

Ask Groomr

“Run payroll for October 1st to the 15th”

Groomr computes a draft pay run and shows each person’s pay. Nothing is final yet. Review it, adjust it if you need to, then say “finalize it” when it’s right.

Other things you can ask:

If Groomr needs something to set up someone’s pay, such as their commission percentage or hourly rate, it asks.

Or do it yourself

Set how someone is paid

1. Open More → Bookkeeping → Payroll.
2. Under Compensation profiles, select the team member.
3. In Compensation & tax, choose a Compensation type: Hourly, Commission (%), Commission tiers, Salary, Booth rent or Hourly + commission.
4. Choose a Worker classification: Employee (W-2) or Contractor (1099-NEC).
5. Fill in the rate fields for that type, then Tip handling and Pay frequency.
6. Select Save changes.

You can open the same editor from Settings → Business → Team.

Run payroll

1. Open More → Bookkeeping → Payroll.
2. Under Pay runs, select Run payroll.
3. Set Period start and Period end, then select Compute draft.
4. The draft opens. Edit any amount in Gross, Commission, Tips or Booth rent; the totals update. Add Notes if you like.
5. Select Save draft to come back later, or Finalize to close it.

To throw a draft away, open it and select Delete draft.

Request a W-9 from a contractor

1. Open the contractor’s compensation editor, as above. Their Worker classification must be Contractor (1099-NEC).
2. Under Tax info (1099-NEC), find Request a W-9 and select Request.
3. Enter their email address and select Send.

They get an email with a link to a short form. They enter their legal name, tax ID and address, sign, and select Submit W-9. Their details then appear in their profile on their own. Or type their Legal name, TIN type, TIN and address in yourself.

Download 1099-NECs

1. Open More → Bookkeeping → Tax.
2. Under Contractor 1099-NECs, pick the tax year.
3. Select Download next to each contractor.

Good to know

• Finalizing can’t be undone. It records the pay in your books: employee pay as Wages (Schedule C line 26), contractor pay as Contract Labor (line 11). Finalizing doesn’t send money to anyone.
• Booth rent is what a groomer pays your business each period. Payroll takes it off what you owe them.
• Tip handling can be Keep their own tips, House takes a percentage or Split tips equally across team.
• Payroll only appears once you have a team. A business with no team members besides the owner doesn’t see it.
• W-9 links expire after 14 days. Select Resend while a request is open, or Re-request after one comes back. If the email can’t be sent, Groomr shows the link so you can share it yourself.
• 1099-NECs are made for contractors paid $600 or more in the year, from finalized pay runs. Each needs the contractor’s legal name, tax ID and address; Groomr says what’s missing. Each PDF is marked DRAFT. Check them with your accountant before you file.
• Tax IDs are stored encrypted. Groomr shows only the last four digits.
• Who can do it. Seeing pay, running payroll, sending W-9 requests and downloading 1099-NECs need View Team Earnings. Only the Owner has it by default; you can give it to a role under Settings → Business → Team, on the Roles tab. It’s part of paid plans.