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Contractor invoice template

Independent contractors are paid against invoices, not payroll, so the invoice is what the client's accounts team approves and what both of you reconcile at tax time. This template bills time and expenses separately, the way most clients want to see them.

Free to createNo account neededUnited States format

Contractor invoice · example

FromReyes Field Engineering
ToBrightwater Utilities Inc.
CurrencyUSD
DescriptionQtyPriceAmount
Field engineering services, 1 to 30 September (PO 4471)62$95.00$5,890.00
Reimbursable: mileage to client sites, 284 miles at the contract rate284$0.70$198.80
Reimbursable: survey equipment rental, receipt attached1$145.00$145.00
Total$6,233.80

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How to use the contractor invoice

  1. Enter your business name, or your own name as it appears on your W-9.
  2. Bill hours or milestones on separate lines, with the period worked.
  3. Add reimbursable expenses at cost, each on its own line.
  4. Save it, then sign in to issue it and record the payment when it arrives.

What a contractor invoice should show

  • Your name or business name, address and email
  • The client company and the person or department that approves invoices
  • Contract, statement of work or purchase order number
  • The period covered, for example 1 to 30 September
  • Hours with the hourly rate, or the milestone and its agreed fee
  • Reimbursable expenses as separate lines
  • Payment terms and how to pay you

Getting paid on time by larger clients

Corporate clients pay through an approval chain. Invoices that quote the purchase order number and match the contract rate go straight through; anything that does not is set aside. Ask at the start who approves invoices and what reference they need.

Net 30 is the usual term for contractors billing companies. Invoice the day a milestone is accepted or at month end, not weeks later: the payment clock only starts when the invoice arrives.

Questions

Do I need to give my client a W-9?

US clients usually ask for Form W-9 before the first payment so they have your taxpayer ID. The ID does not need to appear on the invoice itself.

Will my client send me a 1099?

Businesses file Form 1099-NEC for contractors they pay above the IRS threshold in a calendar year: $600 for payments through 2025 and $2,000 from 2026. Report all your income either way.

Should I charge sales tax as a contractor?

Most states do not tax professional services, but some tax specific services and most tax goods you supply. Check your state's rules before adding tax.

Can I bill expenses?

Yes, if the contract allows it. Bill them at cost with receipts, or with an agreed markup stated in the contract.

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