Do I need Pay Hero for subcontractors?

Pay Hero is used for employees processed through payroll. A genuine independent contractor is usually paid against an invoice and recorded as a contractor or subcontractor cost rather than as salary or wages.

The label a business gives a worker does not decide their legal status. Some contractor payments are schedular payments and require tax to be withheld and reported. Confirm employee-versus-contractor status and any withholding obligation before setting the worker up. Do not assume an intermediary used by the contractor removes the payer's obligations.