Contractors
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3
This topic provides information about contractors in Microsoft Dynamics AX and answers questions that you might have before you set up workers.
What is the difference between a contractor and an employee?
Employees and contractors are both types of workers. When you hire a worker, you must specify in Microsoft Dynamics AX if the worker is an employee or a contractor. A contractor is typically not on an organization’s payroll and is usually hired on a temporary basis, whereas an employee is on the organization’s payroll and does not have a specified employment end date.
Can a contractor be assigned to positions in multiple companies?
Yes, a contractor can hold multiple positions in an organization. Those positions can be in a single company, or legal entity, or in multiple legal entities.
Can a person who is a contractor in one company also be an employee in another company?
Yes, a worker can have employment relationships with two separate legal entities. One of those relationships can be as an employee and the other relationship can be as a contractor.
I employ workers that I hire out as contractors to other people or organizations. Should I set up these workers as employees or contractors?
Generally, if a worker is on your payroll, the worker should be designated as an employee.
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