Hi there, 

I'm in the same situation.  I have one independent contractor that I use regularly and would like it if they could just use the "Time" app to track time.  Here's what I've done to make it so that I can easily pay them for the work done and have it all tracked by job/client project.  First I added them as a Contractor with their name, business name, rate that I pay them, Rate that I charge clients, and put them in the category contract Labor as a Vendor.  Hope that makes sense.  I actually did this by filling out an invoice and just came across it.  Let me explain.  In the line item for an invoice I put something like Contract labor: journeyman. Then I followed the steps below to get them in the system properly.

1. In the invoice line item type in whatever they are called (remember clients/customers will see this description)
2. Click "add new" from the pop up
3. Click "Service" fro the Product/Service Information window that pops up.
4. Fill out all information needed and fill out this information as follows. "Category" = Contract Labor
5. Under Description check the box for "I sell this product/service to my customers"
6. Put the amount that you charge your customer for this work right below in Sales Price/rate
7. To the right of that for "income account" type services
8. Now "Purchasing Information" check THAT box! (because it actually costs you to sell that service, get it?)
9. In Cost put the actual amount you pay the sub contractor hourly.
10. To the right of that in "Expense Account" put Contract labor or whatever you have as contract labor
11. Now the main part! PREFERRED VENDOR!! Select "Add New"
12. A pop up will arrive called "New Vendor" put in the actual name of the person not the company.
13. In that same window click the "+Details" in blue
14. Now just enter in all the information for that contact. Stay away from everything else
15. Ok lets start from the top.  On the left side check the check box for "Print on Check as - use display name if you write checks to the company and not the person. **SUPER IMPORTANT TO GET THIS RIGHT. Example: if I get an invoice from that contractor as the business name then keep this checked. If invoiced from their real name uncheck. (this is so it all adds up in QB)
16. Scroll down and on the bottom right put in their EIN or social
17. Check the checkbox for "track payments for 1099"
18. Under that in the "Default expense account", type in "contract labor" or whatever you have it called in quickbooks that designates you paid someone for work done for your income.
19. SAVE!!!

OK .. So what did we do so far. We created a "Vendor" who is actually a contract laborer or independent freelancer or whatever you have that you "sell" to customers and "Pay" them for. With me so far?

Now that we have that out of the way lets setup time tracking for them shall we?

1. In QB click on Time.  A new window will open.
2. On the left side find and click on "My Team"
3. From the new window at the top click on "Groups and Managers" then click on "Add group" and give it a name like Contract labor and save. 
4. Now from the "Groups and Managers" window you will see "contract labor" to the right of that click on "MANAGERS"
5. in the group managers search bar, type your QB email or your name  and then click on "Add" right below it. Cool.. you've just made yourself a manager of that group. Now click on close.
6. From the "My Team" window that should still be there.. at the top click on "Invite"
7. In the new pop up window put in the same information you used to create your "Vendor" in the previous section we just did.  
8. Now hopefully they will accept and Viola!  Your sub contractor or whatever you want to call them can track time.

Finalizing what we did. 

On the user you just created click on "edit". Under "General" you'll see a tap for Group. Go ahead and put them in the group you created in the last steps.  Now you'll have many preferences you'll want to setup. For example under general I like to fill out all that information.  In "Permissions" set them how you'd like.  If you want to get "big brother" on them under "location" set it to custom rules for this team member, then select "Required"  Just read it and see if that works for you. 

Finally back in Quickbooks.  Click on "Account and settings" On the left click on Time.  Chose the start of the week and Timesheet options you want. Now On the left click on "Advanced"  Look at the fourth selection "Categories" and turn on Track Locations (at least for me I like this option) Next is just a tip and how I like it for time tracking.. Under projects turn ON "Organize all job-related activity in one place.  Just my 2 cents and do as you please on those last two suggestions.

Well this works for me. Your mileage may vary. I hope I helped someone and I want to state now that I am no Quickbooks or Time guru and I am open to suggestions or if I'm doing anything wrong here please don't be afraid to let us ALL know!

Brooke

Kingsley Tech Consultants