Contract Labor is for individuals you pay, but do not consider to be your employee. This would include any sub-contractors for whom you issued a 1099-Misc form. However, you would only issue a 1099-MISC for years prior to tax year 2019. Beginning with tax year 2020, you should issue your sub-contractors a 1099-NEC.
The entry for Wages, is used when you have a W-2 employee that you are recording your expenses for.