Contractors and QuickBooks Integration

When you use QuickBooks Online and DPS, you enter contractor records in QuickBooks Online and enter matching employee records for them in DPS.

When updating occurs between DPS and QuickBooks Online, the following occur:

• The contractors entered in QuickBooks Online are added as vendor-type firms in the Firms hub in DPS.
• The employees entered in DPS are not added to QuickBooks Online.

You also map the DPS "contractor" employees with their corresponding DPS vendor-type firms. These are the firms that are added automatically to DPS for the contractor records that are entered in QuickBooks Online.

This process allows contractors who are added as "employees" in DPS to do the following in DPS:

• Enter timesheets and expense reports in DPS so that labor and expenses are applied for project costing and billing invoices.
• Enter expense reports in DPS and be paid for them with vendor invoices in QuickBooks Online.

The timesheet hours entered by contractor employees in DPS are not added to QuickBooks Online for payroll purposes.

Add New Contractors in QuickBooks Online

Add new contractors in QuickBooks Online in Workers > Contractors. These contractors are added in DPS as vendor-type firms in the Firms hub in Hubs > Firms when updating occurs between the two products. The 1099 Required check box on the Vendor tab of the Firms hub is automatically selected.

You cannot add new contractors directly in the DPS Firms hub.

Make Changes to Contractor Records

In DPS, the fields in the Firms hub that are shared with contractor records in QuickBooks Online are read-only. You must make changes to shared fields in QuickBooks Online. The changes will be updated in DPS when the updating occurs between the two products.

Delete Contractors

In QuickBooks Online you cannot delete a contractor, but you can make it inactive. When you make a contractor inactive, the status of the matching vendor in the DPS Firms hub is changed to inactive when updating occurs between the two products.

Add Employees in DPS for Contractors

In DPS, you add contractors as employees in the Employees hub in Hubs > Employees. These employees are not added to QuickBooks Online.

For more information on entering employees in the Employees hub, see Add Employees.

Employees Entered in QuickBooks Online vs Employees Entered in DPS

The employees that you enter in DPS do not get added to QuickBooks Online when updating occurs between the two products. These employees typically represent contractors who are not paid through timesheets and payroll.

In contrast, the employees that you enter in QuickBooks Online get added to DPS when updating occurs between the two products. These employees represent your direct employees, not contractors. These employees get paid via payroll in QuickBooks Online using timesheet hours from DPS. For more information about the employees entered in QuickBooks Online that get added to DPS, see Employees and QuickBooks Integration.

Distinguishing Contractor Employees from Non-Contractor Employee

In DPS, if you want to distinguish the contractor employees and the non-contractor employees, do the following when you add a contractor as an employee in the DPS Employees hub:

• Select the Firm check box on the Overview tab, and in the Summary pane, select an associated firm.
• Select a contractor labor type in the Labor Type field on the Accounting tab. You set up a labor type specifically for contractors in the DPS desktop application on the General tab in Settings > Advanced PSA > Labor Types.

Map DPS Contractor Employees with Their Corresponding DPS Vendor-Type Firm

If you want to pay contractors in QuickBooks Online (vendor invoices) for the expense reports that they enter in DPS, you must map DPS contractor employees with their corresponding DPS vendor-type firms that were added to DPS when contractor records were entered in QuickBooks Online. You do the mapping on the Employee Mapping tab in Utilities > Integrations > QuickBooks.

For more information, see Map a Vendor Record to an Employee Record.

Make Changes to Contractor Employee Records

Contractor employees who are entered in the Employees hub in DPS are not added to QuickBooks Online. You can make changes to these employee records in DPS, and the changes do not affect QuickBooks Online.

Delete Contractor Employee Records

In the DPS Employees hub, you can delete a contractor employee in DPS. You can also use the Status field on the Summary pane in the Employees hub to change an employee's status from Active to Inactive or Terminated. This affects the ability to process transactions for the employee.