> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bolto.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Paying Contractors

> Scheduled and on-demand contractor payments, funding and Auto-Pay, approval, and payment statuses.

The **Payments** page under Contractors is your hub for everything owed and paid: upcoming amounts, payment history, and per-payment detail. Payments are grouped into **payment runs**, and each row shows its type (**Scheduled** or **On-demand**), due date, amount, and status.

***

## Scheduled payments

Contractors on an [invoice schedule](/contractors/invoice-schedules) are paid automatically each period:

* **Fixed-rate contractors** are paid their period rate, prorated for partial periods
* **Hourly contractors** are paid for approved timesheet hours (skipped if no hours were approved)
* **Terminated contractors** are still paid for work before their end date

US contractors and international contractors on the same schedule are handled in the same payment run — Bolto splits the funding and payout mechanics behind the scenes.

## On-demand payments

For task-based work or one-off payments, use **Make on-demand payment**:

1. Name the payment and set the pay period it covers
2. Select contractors and enter the amount for each — for hourly contractors you can enter hours instead, and for US contractors you can add reimbursements
3. Review the per-contractor amounts and fees, then submit

Every contractor in the payment must have completed their payment setup — Bolto names anyone who hasn't so you can chase them before paying.

<Note>
  US contractors are paid on the next available payday (payroll processing timelines apply). For US contractors you can also add them directly to an on-cycle or off-cycle payroll run while it's in draft.
</Note>

***

## Funding and Auto-Pay

Configure funding under **Payments → Settings**. If you run US payroll, US and international contractor payments each have their own bank account and Auto-Pay toggle.

* **US contractor payments** are debited from your payroll bank account.
* **International contractor payments** are funded through a Bolto invoice charged to your bank account (ACH). The cross-border payout begins once your funding payment is in flight.

**Auto-Pay on**: scheduled and on-demand payments are charged to your bank automatically, and scheduled US runs are approved automatically.

**Auto-Pay off**: each scheduled US run is created as a draft for you to review and **approve** (you always get at least 24 hours before the approval deadline), and each international invoice is emailed for you to pay manually — on-demand invoices give you 7 days to pay.

Auto-Pay requires a default bank account on file.

***

## Fees

* Fees are always shown on the review step before you send a payment.
* International payments include payment-processing and currency-conversion fees, billed on the funding invoice as a single line item. Transfer fees are covered by you — contractors receive the stated amount.

***

## Payment statuses

| Status         | Meaning                                                                       |
| -------------- | ----------------------------------------------------------------------------- |
| **Due**        | Waiting on you — approve the US payment run, or pay the funding invoice       |
| **Processing** | Submitted and in flight                                                       |
| **Paid**       | Settled                                                                       |
| **Failed**     | A payment was rejected or returned — contact support if the cause isn't clear |

A payment run rolls up to the most urgent status of its payments. Contractors see their own payment history — with gross pay, reimbursements, and totals — in their portal, and US contractors can download PDF pay statements.

***

## Tax documents

For **US contractors**, Bolto files **Form 1099-NEC** at year end. Forms appear on the contractor's Documents tab (your view) and in the contractor's own portal. International contractors are responsible for their own local tax obligations — see [Contractor Payments](/contractors/Contractor-Payments-Overview) for the responsibility breakdown.