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UPDATED JUL 6, 2026Client-Managed Contractors are contractors you contract with directly — they don't sign a consulting agreement with Toku. Instead, you use the Toku platform as your HRIS and to approve their invoices and expenses, and Toku handles paying them on your behalf.
Because these contractors are managed directly by you, the onboarding and ongoing management of these contractors is owned by your team end-to-end. Toku's role is to provide the platform and to process payments - we're here to support you with anything technical, but the day-to-day relationship, contracting, and management of the contractor sits with you. This article walks through exactly what that looks like so you know what to expect at each stage.
What you're responsible for (and what Toku handles)
| You (the client admin) | Toku |
|---|---|
| Contracting the contractor directly under your own agreement | Providing the platform (HRIS) |
| Reviewing the contractor's submitted details and completing onboarding | Inviting the contractor to the platform |
| Reviewing and approving invoices and expenses | Generating the consolidated invoice |
| Funding payments on time | Releasing payment to the contractor |
| Managing the contractor relationship and terminations | Technical/platform support as needed |
💡 A quick note on support: Client-Managed Contractors do not receive HR support from the Toku team. These contractors are managed directly by you. Toku is always happy to help with any technical or platform questions - just reach out and we'll get you sorted.
1. Onboarding a Client-Managed Contractor
When you add a Client-Managed Contractor to Toku, they're automatically invited to the platform to fill out their details and provide the tax forms we need in order to pay them.
Once the contractor has submitted their information, it's up to you to review those details and move them to Onboarded. Here's how:
- Log in to your Toku account and open the Onboarding tab.
- Click on the Client-Managed Contractor's name to open their profile.
- Review everything the contractor has submitted (see the checklist below).
- Once everything looks complete and accurate, click the blue Complete Onboarding button to finalize. After you click Complete Onboarding, the contractor is moved to Onboarded and their onboarding is complete.
Before you complete onboarding, confirm:
- [ ] Banking or wallet details are on file
- [ ] An address is on file
- [ ] The tax form has been completed and signed
💡 Sending your own agreement? If you'd like the contractor to sign your own contract, they can sign it and upload it to their Documents section in the platform. This is optional and managed entirely by you.
2. Invoicing and payment
Once a contractor is onboarded, the monthly payment cycle works like this:
- The contractor submits their invoice by the 19th of the month.
- You review and approve invoices by the 21st of the month.
- A consolidated invoice is sent to admins a few business days after all approvals are complete.
- You fund the payment so Toku can release it to the contractor on the last day of the month.
⚠️ Funding deadline: Payment must be received at least 4 business days before the last day of the month. If payment is not received in time, the contractor's payment will be delayed by one day for every day funding is outstanding.
3. Auto-invoicing (optional)
If you'd prefer not to have contractors submit an invoice each month, you can turn on auto-invoicing. With auto-invoicing on, the contractor's yearly payment amount is divided by 12 and submitted automatically on their behalf.
To turn auto-invoicing on or off:
- Go to Settings.
- Click Contractor Settings.
- Toggle the auto-approval and auto-submission options on or off. A few things to know about auto-invoicing:
- The auto-submitted invoice appears on the 1st of the month, giving you a few weeks to review and make any adjustments before it's approved.
- The contractor can retract a submitted invoice and make changes at any point up until it has been approved.
- Once an invoice has been admin-approved, changes can no longer be made in-platform. If a correction is needed after approval, reach out to Toku and we'll help get the invoice corrected before payment is released.
4. Terminating a Client-Managed Contractor
When you're ready to end a contractor's engagement:
- Go to the People tab and select People Directory.
- Click on the contractor's name.
- Click the red Terminate Employee button to move the contractor to Inactive. Moving a contractor to Inactive stops all auto-submission invoices going forward.
💡 Tip: Before terminating, make sure any final invoice has been submitted, approved, and funded so the contractor's last payment isn't delayed.
Support
Client-Managed Contractors are managed directly by your team, so Toku does not provide HR support for them. We do, however, provide platform and technical support whenever you need it. If you run into anything in the platform - onboarding, invoicing, settings, or payments - please reach out and our team will be glad to help.
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