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 do not consider to be an employee. These would be sub-contractors that you issue a 1099-Misc form prior to tax years 2019. Beginning with tax year 2020, the sub-contractors would issue you a 1099-NEC.
The entry for Wages is used when you have a W-2 employee that you are recording your expenses for.