LLC Tier Members: Payroll functionality — including paying employees and contractors directly through your Collective Dashboard — is currently available only for members on the S Corp tier. If you are on the LLC tier, you can still work with contractors and pay them however you prefer (Zelle, PayPal, Venmo, check, etc.). We recommend sending all contractor payments from your business checking account to keep your bookkeeping clean and your documentation clear. For more information on contractor requirements and tax forms, see "Understanding Independent Contractors."
Onboarding and Managing Employees and Contractors at Collective
You can easily invite, onboard, and manage your U.S.-based employees and contractors directly through your Collective Dashboard. (Note: Collective Payroll currently supports only U.S.-based employees and contractors. For international contractors, use an external payment platform.)
Go to Payroll > Contractors (1099) or Employees
Navigate to the Payroll section in your Collective Dashboard, then scroll to the appropriate section — Contractors (1099) for independent contractors, or Employees (W-2) for W-2 employees.
Select "Manage"
This page shows your current employees and contractors and their status (e.g., Invited, Awaiting Approval, Completed).
Add an Employee or Contractor
Contractors:
- Click Add Contractor, then choose whether you're onboarding an individual or a business.
- Enter the name, pay type (hourly or fixed), and start date.
- Add the contractor's email address and make sure the invitation checkbox is selected.
Employees:
- Click Add Employee
- Enter the name, work address, and start date of the employee.
- Add the employee’s email address and make sure the invitation checkbox is selected.
- You have two options for completing onboarding: you can enter the employee's information yourself to onboard them manually, or you can invite them to self-onboard by adding their email address and ensuring the invitation checkbox is selected. If you choose to invite them, they'll receive an email prompting them to enter their own details (such as SSN, address, and bank info).
Send the Invitation (if applicable)
If you selected the invitation option, click Save and Continue to send an email invitation. The invitation will be sent to both you and the employee directly — no need to forward anything.
Track the Status
- Employees and contractors will appear as Invited until they complete setup.
- Once they've entered their details, the status changes to Awaiting Approval.
Approve the Employee or Contractor
When setup is complete, you'll receive an email prompting you to review and approve them in your dashboard.
- Go to the three-dot menu next to their name and select Approve Onboarding.
Resend or Remove Invitations (if needed)
If your employee or contractor loses their invite, you can click Edit > Save and Continue to resend it. You can also remove them anytime.
How to Pay Contractors at Collective (S Corp Tier Only)
You can record and send contractor payments directly through your Collective Dashboard. This ensures each contractor's payment history is tracked accurately and reported correctly for their year-end 1099-NEC. All payments to U.S.-based contractors — whether sent through direct deposit, check, Zelle, or another method — must be recorded in Collective Payroll.
How to Create a Contractor Payment
Go to Payroll > Contractors (1099) and click Pay. You'll see your recent payments (for the last 3, 6, or 12 months).
Select "Create contractor payment" — A new window will open where you'll choose a payment date and select contractors to pay.
- Payments made through Collective Payroll use 4 business days for direct deposit.
- To ensure timely payment, schedule before 4 PM Pacific Time to count that same day as a business day.
Choose Contractors to Pay — Only contractors who've completed onboarding will appear as eligible for payment.
Enter Payment Details — For each contractor, enter:
- Pay type (hourly or fixed)
- Payment amount
- Optional reimbursement (e.g., expense reimbursement)
- Payment method (default is direct deposit, but you can record other methods such as check, Zelle, or Venmo)
Review Payment Summary — The system will display:
- Total payment amount
- Breakdown of payment methods (direct deposit, check, etc.)
Even if part of the payment is made outside Collective (like a check), recording it ensures accurate 1099 reporting.
Save and Submit — Click Save and Continue, then Submit to confirm payment.
Sending Year-End Tax Forms
If your employee or contractor is onboarded and paid via Collective Payroll, and any outside payments are recorded in Collective Payroll before December 30th, then Collective will issue the appropriate year-end tax form before January 31 of the following year:
- Employees will receive a W-2
- Contractors will receive a 1099-NEC
Payment Speed & Processing Timeline
Payments via Collective are on a 4 business day direct deposit schedule.
- Business day cutoff is 4 PM PST.
- Weekends and holidays extend the processing timeline.
- Always determine your target deposit date and work backwards to ensure your withdrawal date aligns with your cash flow.
How to Pay Employees at Collective (S Corp Tier Only)
You can record and send employee payments directly through your Collective Dashboard. This ensures each employee's payment history is tracked accurately and reported correctly for their year-end W-2. All payments to U.S.-based employees must be recorded in Collective Payroll.
How to Create an Employee Payment
Go to Payroll > Employees and click Run — Then run payroll the same way you run payroll for yourself.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.