It can be confusing to try to figure out if you should be entering your expenses as Contract Labor or Wages. We are here to help!
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.