How to Pay Independent Contractors Simply & Correctly (Using a Receipt Book)
- Dec 24, 2025
- 18 min read
Updated: Jan 10
Before we dive in, let me clarify something important:
I’m not a lawyer or a tax professional. I’m sharing what I’ve learned from my own house cleaning business and my experiences with independent contractors. Laws vary by state and country, and they change over time. So, always double-check with a qualified professional in your area to ensure you’re doing things correctly for your situation.
What You’ll Learn in Series 5
In Series #5, we’re going to get some help for your cleaning business!
Right now, I’m working solo—but throughout my cleaning years, I’ve brought in help, especially during busy seasons. In this series, I’m going to show you exactly how I went through that process:
Simple and effective
No fancy payroll software
A secure, clear way for both you and your worker(s)
You’ll learn how to:
Hire an independent contractor as your helper (and why that’s often best when you’re growing)
Pay independent contractors fairly and legally (and what an independent contractor actually is, in plain English)
Use a simple receipt book to track their hours or per-job pay
Stay organized so both you and your workers feel secure, respected, and clear about what’s going on
Grab your notebook, maybe a cup of coffee or tea, and let’s turn your cleaning skills into a real, protected business. 🧼📒✨
What Is an Independent Contractor? (Super Simple)
Okay, first things first:
What’s an independent contractor?
And how is that different from an employee?
To make this easier to understand, I’m going to use a real-life example. We’ll call our independent contractor Anna Rose.
As an independent contractor, Anna Rose works with my business, not for my business. We might be in the same house, at the same time, cleaning side by side. That’s okay. What matters is the relationship, not the location. We’re on the same team for that job, working side by side. But what makes her “independent”?
What Makes Anna Rose an Independent Contractor?
Anna Rose is her own business.
She doesn’t wear my business uniform.
We both agree on the result: “This house needs to be fully cleaned by 3 PM.”
She controls how she does her part of the work.
We divide tasks like two businesses collaborating: “She does kitchen & floors, I do bathrooms + dusting.”
She can decide how to clean her areas with:
- Her own products
- Her own order of tasks (where she starts, where she finishes)
- Her own techniques
She usually uses her own tools and supplies, but she doesn’t mind using some of mine when we work side by side.
She’s free to have other clients.
She can work with other cleaning businesses or her own private clients.
She can say no to a job if she doesn’t want it.
We agree on how she’s paid.
I can pay her per job, per project, or hourly—whatever we both agree to in advance.
In our example, when we work side by side, Anna Rose prefers $18 per hour.
Now, this part is very important:
👉 I cannot treat or refer to her as an employee, even if we’re in the same house cleaning together.
I can call her:
A worker
A contractor
A subcontractor
…but not an employee.
When a “Contractor” Starts Looking Like an Employee
If I’m doing any of the things below, I’m treating her more like an employee:
Telling her exactly how to do every step: “First do this, then this, use this product, fold like this…”
Controlling her schedule: “You must work these exact hours every Monday–Friday.”
Not allowing her to bring her own supplies or choose how she works
Requiring things like:
- Mandatory staff meetings
- A required uniform with my logo
- That she only works for me and not for other clients
The more I control, the more she looks like an employee, even if I call her a contractor.
Why Does That Matter So Much?
Because the moment someone is classified as an employee, you step into a whole new world of responsibility:
Workers’ compensation
Payroll taxes
Tax withholding
Employee benefits, and more
Those things aren’t bad at all—they’re just a different, more complex setup.
With true independent contractors, this setup gives you flexibility:
If you have a busy week, you can bring in extra help.
If it’s slow, you don’t have the pressure of covering someone’s regular hours.
And here’s another cool part:
Many independent contractors are motivated, fast learners who really care about doing a good job—because they want to:
Keep the relationship strong
Get called back for more work
Grow their own client base
When done the right way, it can be a win–win.
Bonus: Simplified “Payroll” for Contractors
Let’s talk money—because I know that’s on your mind too. 💵
Instead of running a full payroll system like you would with employees, with independent contractors you simply:
Pay them per job or per hour. Example: Anna Rose agrees to $18 per hour when we work together.
Ask them to complete Form W-9 at the beginning of your working relationship. That form gives you their legal name and Taxpayer Identification Number so you can report payments correctly later.
Issue a Form 1099-NEC at tax time, if you’re required to.
That’s it.
No complicated paystubs.
No payroll software—unless you want it.
It’s simple, clean, and effective—especially when you’re just starting out or growing slowly and intentionally.
Protect Yourself and the Contractor
Now, just because this setup is simpler doesn’t mean it should be casual.
To protect both of you, you want a clear Independent Contractor Agreement in place. This spells out things like:
What work they’ll be doing
How they’ll be paid
How either of you can end the agreement
Confidentiality and not taking your clients behind your back
That way, there’s:
No guessing
No awkward conversations later
And you both know exactly what to expect
🎁 In my YouTube video description, I link a planner I created, if you really want to save time and look professional with your clients and contractors:
🧹 Plan De Limpieza – Estimate By Room” (available on Amazon)
It includes pre-filled contractor forms—you literally just fill in the blanks, sign, and you’re ready to go with your independent contractor.
If you want to feel more organized, legit, and confident when you hire help, it’s a great tool to have.
Why Paying Independent Contractors Correctly Matters
Alright, let’s get into why it’s so important to calculate your independent contractor’s pay—whether it’s per job or per hour—with accuracy and intention.
I want you to imagine this:
You’ve had a busy week… Your worker, Anna Rose, showed up, did the jobs side by side with you, your clients are happy… Now it’s payday.
This is the moment where a lot of small business owners either shine 🌟 or accidentally create confusion, mistrust, or even legal problems—just because the math and records aren’t clear.
Getting this right isn’t just about numbers. It’s about running a smooth, legal, and trustworthy business.
1. ✅ Fair Pay = Happy Workers
When I pay my worker Anna Rose fairly, based on her actual hours worked, and even share the tips I’ve received from clients, I’m doing more than just following rules—I’m showing respect.
I’m telling her as a contractor: “I see your effort. I value your time. I keep my word.”
That kind of trust:
Creates a positive working relationship
Makes it much more likely she’ll want to work side by side with me more often
Encourages her to learn my style and represent my business well, if she ever prefers to go do the job on her own and get paid per job
💡 Important Note: Federal minimum wage laws apply to employees, not true independent contractors, because contractors are treated as being in business for themselves. Still, as a best practice, I personally never pay below my state’s minimum wage—even for contractors—because it’s a simple baseline of fairness and helps avoid misclassification problems.
2. 🤝 Trust & Retention = Workers Who Stay
A worker who feels underpaid or confused about their pay will quietly start looking for other options.
But a worker who:
Knows exactly how their pay is calculated
Gets paid in full and on time
Can see everything clearly written out on a receipt
…is much more likely to:
Want to continue doing business with you
Recommend friends who have cleaning businesses to work with you (so you always have excellent help)
Grow along with your business
That saves you time, energy, and money on constantly looking for new independent contractors.
3. 🔥 Motivated Workers = Better Quality Cleaning
Money is just one part of motivation—but fair money, paid on time, is powerful.
When contractors feel that:
Their pay is calculated clearly
They’re being paid what was agreed
They’re not being taken advantage of
…they naturally want to do better.
They:
Move a little faster
Pay attention to details
Take pride in representing your business and their business together
Better pay practices → better cleaning quality → happier clients.
Step-by-Step: How to Use a Simple Receipt Book
Now that you understand why clear, fair pay matters, let’s talk about how to put that into practice with real numbers.
Grab your:
General-purpose receipt book
Pen
A simple calculator (or your phone)
We’re going to use a real-life style example with Anna Rose, and walk through Week #1 together.
These are example receipts provided for learning purposes only.
Keep in mind:
You should always set rates that are fair and sustainable.
For employees, you must follow minimum wage and overtime laws.
For independent contractors, you still want to avoid anything that looks like underpaying or misclassification.
💡 Note: You do not need to pay the exact $18.00 per hour shown in these examples. That’s just a sample rate to make the math easy to follow.
We’ll use a General Purpose Receipt Book—the kind you can find at Walmart, Staples, or Amazon.
Step-by-Step Example – Week 1 (Hourly Pay)
Using your general-purpose receipt book, here’s how to fill it out.
Step 1: Write the Week Number
Example: Week #1
Step 2: Write the Date Range
Example: Monday the 3rd to Friday the 7th
Step 3: Write the Month and Year
In this example, it’s February 2025.
Step 4: Worker’s Name and Address
Example: Anna Rose, plus her full address.
Now let’s walk through Anna’s week together.
Monday, February 3rd
Anna completed 2 house cleaning jobs with my business.
(Optional but recommended): You can write the start and end times for each job. When you and your independent contractor agree to hourly pay, tracking this weekly shows respect and helps both parties value each other’s time.
First Job – Katie’s Apartment:
Took 3 hours to clean
Start: 9:00 AM
Finish: 12:00 PM
Pay: 3 hrs × $18.00 = $54.00
Second Job – Jax’s Condominium:
Took 3.5 hours to clean
First 3 hours × $18.00 = $54.00
To calculate the half hour:
- $18 ÷ 60 mins = $0.30 per minute
- 30 mins × $0.30 = $9.00
Total for this job:
- $54 + $9 = $63.00
💡 Quick Tip: Knowing that $18 ÷ 60 = $0.30 (30 cents per minute) makes it easy to break down shorter time segments:
10 minutes × $0.30 = $3.00
15 minutes × $0.30 = $4.50
20 minutes × $0.30 = $6.00
Tuesday, February 4th
One house cleaning job – Rainy’s House:
Took 5 hours
5 hrs × $18.00 = $90.00
Wednesday, February 5th
First Job – Mr. Williams’ House:
Took 5 hours
5 hrs × $18.00 = $90.00
Second Job – Rob’s Apartment:
Took 3 hours
3 hrs × $18.00 = $54.00
Thursday, February 6th
One long cleaning job – Mrs. Vicky’s House:
Started at 8:00 AM, finished at 4:00 PM
Total: 8 hours × $18.00 = $144.00
Friday, February 7th
One small job – Jackie’s Condominium:
Took 3.5 hours
3 hrs × $18.00 = $54.00
30 mins × $0.30 = $9.00
Total: $54 + $9 = $63.00
Total Weekly Earnings for Anna Rose (Week 1)
Now, let’s total it up:
Monday = $54 + $63 = $117
Tuesday = $90
Wednesday = $90 + $54 = $144
Thursday = $144
Friday = $63
✅ Grand Total for Week #1 = $558.00
This example gives you a clear picture of how to use your general-purpose receipt book to:
Keep accurate records
Show your worker exactly how their pay is calculated—job by job, hour by hour
Use this method to:
Build trust
Stay organized
Run your house cleaning business like a pro
Signing, Copying & Tracking Each Week’s Pay
Once you’ve written down the hours, calculated the pay, and totaled the week in your receipt book,
there’s one more crucial piece a lot of people skip:
This is where your system shifts from “just math” to a professional pay record that protects both you and your worker.
📌 Important: Every time you pay your worker—whether weekly or biweekly—have them sign the receipt.
Always:
Give them a copy of the signed receipt along with their payment
Note the payment method on the receipt, such as:
- 💵 Cash
- 💻 Zelle
- 🧾 Check
Giving a copy to the worker allows them to double-check their hours and total earnings, which is helpful for you too. This way, both you and the worker are clear and in agreement that that week’s numbers are correct and final.
Repeat the Process for Each Week
Once you’ve done this process for one week, the rest is just repeat and rinse.
You’re not reinventing the wheel every time—you’re following the same simple pattern for each week of the month.
Do the same for every week of the month:
After the last week of the month, total each worker’s earnings for that month.
Using Anna Rose’s weekly earnings for February 2025:
✅ Total February earnings = $2,232.00
Tip for Managing Multiple Workers
Now, you might be thinking: “Okay, this works for one worker… but what if I have two or three?”
The beauty of this system is that it scales without getting confusing, as long as you stay organized.
If you have more than one worker, it’s best to buy a separate receipt book for each independent contractor.
On the front cover, write:
Their name
The year
This makes it easier to:
Track their monthly and yearly earnings
Keep each person’s records clean and separate
Example: Using the Receipt Book for Per-Job Pay
So far, our examples have focused on hourly pay.
But what if your worker prefers getting paid per job instead of by the hour? Or what if certain jobs are flat-fee?
Good news—you don’t need a new system. You can use the exact same receipt book method; you’ll just swap hours for flat job totals.
You can also use your general-purpose receipt book to record per-job pay on a daily basis.
In this example, we’ll continue using Anna Rose, but this time with her preference for per-job pay instead of hourly.
Here’s how to record her per-job weekly earnings:
Week 1 – Per-Job Pay
Monday, Feb 3 – Katie’s apartment: $150.00
Tuesday, Feb 4 – Rainy’s house: $90.00
Wednesday, Feb 5 – Mr. Williams’ house: $125.00
Thursday, Feb 6 – Mrs. Vicky’s house: $225.00
Friday, Feb 7 – Jackie’s condo: $80.00
💰 Week #1 Total: $670.00
Just like in the hourly pay example, repeat this process for:
Then, add all weeks together to get the monthly total.
In this per-job example, Anna Rose’s February earnings come out to: $2,195.00
Flexibility as an Independent Contractor
As you can see, the numbers tell a clear story of what you and your worker agreed to.
But another huge advantage of this setup is flexibility.
Independent contractors aren’t locked into the same schedule or structure as employees—and your receipt book can reflect that too.
In her Independent Contractor Agreement, Anna Rose stated that during the 4th week of each month, she only works: Monday through Wednesday, 9 AM – 2 PM
That’s why her Week #4 earnings are only $300.00 in that scenario.
As an independent contractor, she controls her schedule and workload. She can choose:
To get paid per hour or per job
To work 5 days a week or just 3 days
To work full-time one week and part-time the next
She is in business for herself—like I mentioned before, she works with my business, not for my business.
That’s the beauty of this method—it supports both:
The worker’s independence, and
Your business’s need for clarity and accurate records
Final Thoughts: Staying on Top of Your Worker’s Pay
Keeping in mind the essential reasons for accurately calculating your worker’s pay will naturally encourage you to double-check your math every time.
And trust me—it’s worth it.
Personally, I do and manage all of my own business accounting. I used to pay my independent contractors every Friday.
Each night before bed, I’d:
Grab the receipt books
Calculate each worker’s daily hours
Write it down
Then on Friday, once the workday was done, all I had to do was:
Add up that Friday’s total hours
Add Monday through Friday’s weekly hours
Pay each worker exactly what was due
✅ That was my weekly routine—and it worked smoothly.
I also know business owners who prefer to pay their contractors on Saturdays, after reviewing the entire week. You can do that too, if it fits your schedule better.
Other Ways to Manage Worker Pay
If you don’t want to do all the math yourself, you’ve got options:
💼 Hire a bookkeeper – They can handle calculations and pay workers biweekly.
📱 Use an accounting app – Some require a small subscription fee, but they automate a lot of the work.
👨👩👧👦 Ask a responsible family member (maybe a teen) to help with:
- Weekly receipts
- Online advertising
- Passing out flyers or business cards in local neighborhoods
Remember: This is your business. You get to design the system that works best for you.
If you really want to save time and look professional with both your clients and your contractors, I have created a planner just for you:
🧹 “Plan De Limpieza – Estimate By Room” – available on Amazon. It includes pre-filled contractor forms—you literally just fill in the blanks, sign, and you’re ready to go.
What About Tips?
Now, let’s talk about tips. 💵
Do you add them to the weekly receipt—or give them daily?
Personally, I like to hand them out daily when a client leaves one. Over time, you’ll notice patterns—some clients tip the same amount every time.
💡 Tip: Have a little cash on hand so you can pass those tips directly to your workers. They feel appreciated, and you build trust.
There’s a newer federal “No Tax on Tips” idea for certain tipped workers, but the rules are narrow and many independent contractors won’t qualify. Because this area is new and still changing, it’s best to ask a tax professional how tips should be handled for your specific business.
At the End of the Year
When the year wraps up, you may need to issue your independent contractors a Form 1099-NEC so they can file their taxes properly.
Again, always double-check these requirements with a tax professional or accountant in your area.
Before we wrap up and go into the Q&A section, I just want to remind you—this doesn’t have to feel overwhelming. You don’t need fancy software or a big office to run a real business. With a simple receipt book, clear agreements, and a little bit of consistency, you can pay your workers fairly, stay organized, and protect the business you’re working so hard to build. 💛
Quick Q&A (Bonafide Fam)
Alright Bonafide Fam, this space is all about learning and growing together. At the end of my videos and blogs, I always love to wrap things up with a quick Q&A section—because sometimes seeing the answers laid out makes everything click even more.
My goal is to help you understand clearly, relate it to your business, and take confident action as you build and grow your service business.
If something in this topic sparked a question, drop it in the comments—I do read them! And who knows… your question might be the exact one someone else needed, too. We grow better together.
1. Do I need a lot of fancy software to pay an independent contractor?
Short answer: No.
You can start very simple. In my example with Anna Rose, I use a general-purpose receipt book, a pen, and a calculator.
The key isn’t the tool—it’s the system:
Write the jobs and hours
Do the math
Total the week
Have your worker sign
Give them a copy
That alone makes you way more organized than most small cleaning businesses.
2. What’s the difference between an independent contractor and an employee?
An independent contractor:
Works with your business, not for your business
Controls how they do their work
Can bring their own supplies and tools
Can say yes or no to jobs
Can work for other clients and other cleaning businesses
An employee is someone you:
Set a regular schedule for
Control step-by-step (how, when, and sometimes even what to wear)
Typically provide tools/supplies for
Might require to only work for you
The more you control their schedule and how they do the work, the more they look like an employee, even if you’re calling them a “contractor.”
3. Can I call someone an independent contractor but treat them like an employee?
No—that’s exactly what you want to avoid.
If you:
Tell them exactly how to clean every step
Force a strict schedule
Require a uniform with your logo
Don’t let them work for anyone else
…then you’re treating them like an employee, even if you write “contractor” on paper.
That’s where legal and tax problems can show up, so be very careful to match the title with the reality.
4. How much should I pay my independent contractor?
That depends on:
Your area and market
Your prices
The level of work and experience
In my example, I used $18 per hour for Anna Rose because it’s easy math for teaching.
Personally, as a best practice, I never pay below my state’s minimum wage, even for independent contractors. You want your rate to be:
Fair
Sustainable for your business
Attractive enough for good workers to stay
5. Is it better to pay hourly or per job?
Both can work. You can choose:
Hourly pay if you want to link everything to time worked
Per job (flat fee) if your worker prefers a set amount per house
You can even mix:
Some jobs hourly
Some jobs flat-fee
The important thing is:
Decide before the job
Write it clearly in your agreement
Track it clearly in your receipt book
6. How often should I pay my independent contractors?
There’s flexibility here. Some options:
Every Friday – like I did, based on that week’s receipt
Every Saturday – after you review the whole week
Every 2 weeks – if that works better for your cash flow
Choose a rhythm that:
You can stick to consistently
Your worker understands and agrees to
Then write that in your Independent Contractor Agreement so expectations are clear.
7. Why do I need a receipt book if I’m just paying cash?
Because cash without records is where confusion and problems start.
A general-purpose receipt book helps you:
Show exactly how you calculated their pay
Track each day and each job
Have the worker sign when they are paid
Give them a copy for their own records
This protects both of you and makes you look more professional.
8. What’s the purpose of Form W-9 and Form 1099-NEC?
Form W-9 – You have your independent contractor fill this out at the beginning of your working relationship. It gives you:
Their legal name
Address
Taxpayer Identification Number
Form 1099-NEC – At the end of the year, if you’re required to, you report how much you paid that contractor, using the information from their W-9.
These forms help you stay on the right side of the tax rules. (Always double-check with a tax professional for your situation.)
9. What if I make a math mistake on a receipt?
It happens. You’re human. 😊
If you notice a mistake:
Fix it as soon as you see it
Show your worker the error
Pay them any difference you still owe
Note the correction in your records (even as a little note on the receipt)
Correcting your mistake builds trust, because it shows your worker: “If there’s ever an error, I will fix it in your favor. I’m not trying to short you.”
10. Can I use this same method if I have 2 or 3 workers?
Yes! That’s exactly why I recommend:
One receipt book per worker
On the cover, write:
Their name
The year
Then:
Use that book only for that worker
Track weekly and monthly totals
Keep their records separate and clean
This makes it way easier at the end of the month and at tax time.
11. Do I have to share tips with my independent contractor?
Legally, tip rules can be tricky and depend on your location and setup—so you should ask a tax professional how they apply to you.
Practically, I personally like to:
Give tips to my worker daily when a client leaves one
Keep a little extra cash on hand so I can pass tips through right away
This makes workers feel valued and can really increase loyalty and motivation.
12. What if my worker only wants to be paid in cash?
Cash is okay as long as you still keep records.
If someone says, “Just pay me cash, no paperwork,” that’s a red flag.
Even with cash, I recommend:
Using the receipt book
Writing the amount, date, and jobs
Having them sign
Marking “Cash” as the payment method
And for tax and legal reasons, talk to a professional about how to properly report those payments.
13. Can I switch a worker from contractor to employee later?
Yes. Sometimes as your business grows, you may decide it makes more sense to hire someone as an employee instead of a contractor.
If you do:
Treat it as a fresh setup
Get clear help from a professional on payroll, workers’ comp, etc.
Update their agreement to match the new relationship
What you don’t want is a blurry, half-and-half situation where they’re “kind of” one and “kind of” the other.
14. What should I do before I hire my very first contractor?
Here are some simple steps:
Decide if the role truly fits independent contractor rules in your area
Create or review an Independent Contractor Agreement
Prepare your receipt book system
Have them fill out Form W-9
Agree on:
- Their rate
- How often you’ll pay
- Whether it’s hourly or per job
You don’t have to be perfect—just be clear, honest, and willing to improve your system as you go.
15. Is this legal or tax advice?
No. Even though I’m sharing real examples from my own cleaning business, I’m not a lawyer and not a tax professional.
My goal is to help you understand the basics, feel less overwhelmed, and have a simple starting system like the one I use with Anna Rose.
But before you decide anything for your own business, always:
Check your state and local laws
Ask a qualified professional in your area
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