MOBILE: Contractor Compensation Enhancements

Overview

We’ve introduced enhancements to the contractor compensation model, enabling organizations to configure fixed compensation for contractors more accurately and manage contractor payments without dependency on attendance or working hours.

With this update, payroll admins can now configure contractors to be paid either a fixed amount every pay cycle or a fixed compensation where the payable amount can vary each payroll run. These improvements are supported across onboarding, payroll processing, imports, pay stubs, exit flows, analytics, and mobile pay visibility.

Key Enhancements

1. Fixed Compensation Model for Contractors

A new Fixed compensation type has been introduced for contractors, allowing organizations to pay contractors a fixed amount every pay cycle.

With this model:

• Contractors receive a consistent lump-sum payment each payroll cycle
• Payments are not dependent on attendance or hours worked
• Payroll processing becomes simpler for contractors who are paid on a per-cycle basis

This reflects real-world contractor payment structures used by many organizations.

2. Support for Varying Fixed Compensation

In addition to standard fixed pay, admins can now configure Fixed Compensation with Varying Amounts.

With this option:

• Contractors do not have a predefined compensation amount
• Admins can enter the payable amount during each payroll run
• The system flags contractors during payroll if the payable amount is missing

This is especially useful for milestone-based, negotiated, or project-based contractor payments where the amount may change each cycle.

3. Payroll Execution Without Attendance Dependency

Contractors with fixed compensation are now fully independent of attendance or hour tracking.

As a result:

• Payroll will not generate warnings related to missing hours or attendance
• Contractors will no longer appear in the “Need Attention” section for attendance-related issues
• Payroll admins can process contractor payments without entering dummy hours

This significantly reduces payroll noise and manual corrections.

4. Payroll Run Enhancements

During payroll processing:

• Fixed compensation contractors will display editable payment amounts in payroll screens
• For contractors with varying pay each payroll, the system will prompt admins to enter the amount before finalizing payroll
• Amounts can also be overridden during payroll finalization
• The system ensures payment amounts cannot be zero when no other earnings exist

These improvements allow more flexible and accurate payroll processing for contractors.

5. Import and Compensation Setup Updates

Compensation configuration for contractors has been enhanced across multiple workflows:

• Fixed compensation type added to contractor compensation setup
• Per annum compensation option removed for contractors
• New import fields added, including:
  • Fixed compensation amount
  • Indicator for amount varying each payroll
• If varying compensation is enabled, the amount field can remain blank during imports

This enables organizations to bulk configure contractor compensation more accurately.

6. Pay Stub and Payroll Reporting Updates

Pay stubs for contractors with fixed compensation now display:

• Regular earnings with the paid amount
• Year-to-date totals (if enabled)

All other earnings, reimbursements, and deductions will continue to appear as usual.

7. Exit Settlement Support

The contractor exit settlement workflow has also been updated:

• If a contractor has varying fixed compensation, admins will be prompted to enter the final payable amount
• Once the amount is entered, the system will apply any pending deductions or adjustments

This ensures accurate final payouts during contractor exits.

8. Mobile Pay Visibility

The mobile experience has been updated to support the new contractor compensation model.

Contractors can now view:

• Fixed compensation details on the My Pay screen
• Compensation revisions and updates
• Accurate pay information for both fixed and varying compensation models

Impact

These enhancements help organizations:

• Pay contractors using real-world payment structures
• Reduce manual payroll adjustments and workarounds
• Eliminate attendance dependencies for contractor payments
• Improve pay visibility for contractors across web and mobile

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