# Employees, contractors, and booth renters

> How employees (W-2), contractors (1099) and booth renters differ in Lilo, from hours and time off to services and pay details, and how to change someone's type.

**Applies to:** Lilo Pro

Source: https://heylilo.co/help/team/employment-types

Everyone on your team has an employment type: employee, contractor or booth renter. The type decides who sets their hours, whether their time off needs approval, and what they can change about their services. Their role is separate. It decides their permissions (see [Team roles and permissions](https://heylilo.co/help/team/roles-and-permissions)).

Lilo doesn't run payroll or create tax forms. The type only changes how Lilo works for that person.

## How the types compare

| | Employee (W-2) | Contractor (1099) | Booth Renter |
|---|---|---|---|
| Role | Any role | Any role | Always **Service Provider** |
| Weekly hours | You set them, unless you let them change their own | They set their own | They set their own |
| Time off | Needs approval, unless you turn on auto-approve | Approved right away. Lilo emails their managers. | Approved right away. Nobody is told. |
| Services | You choose them | You choose them | They add and remove their own |
| Prices and lengths | Your menu's | They can set their own | They can set their own |
| Their own services | No | No | They can create them |
| Schedule page | **My Schedule** | **My Availability** | **My Schedule** |

On a profile, **W-2**, **1099** or **Booth Renter** shows under the person's name.

## Employees (W-2)

You set an employee's hours on their profile. You can also let them change their own hours, with or without your approval. Their time off needs approval unless you turn on **Auto-approve scheduling requests** for them. See [Team schedules and approvals](https://heylilo.co/help/team/schedules-and-approvals).

Employees offer the services you give them, at your prices.

## Contractors (1099)

Contractors set their own hours on **My Availability**. Their changes apply when they save. You can't change their hours. When they take time off, it's approved right away and Lilo emails their managers.

You choose which services they offer. They can set their own price and length for each one in **My Services** (see [Your services as a provider](https://heylilo.co/help/services/your-services)).

## Booth renters

A booth renter rents space in your business and runs their own book. They set their own hours and take time off without approval. They build their own menu from your services and ones they create. They can also [ask you to send campaigns](https://heylilo.co/help/marketing/campaign-requests) to their clients. See [Booth renters on your team](https://heylilo.co/help/team/booth-renters).

This is different from the Lilo Booth plan, which is a separate account for someone who works on their own.

## Choose a type when you add someone

**Applies to:** Owners, admins and location managers

When you add someone with **Add** on the [**Team**](https://app.heylilo.co/dashboard/team) page, choose their **Role** first. Then choose their **Employment type**: **Employee**, **Contractor** or **Booth Renter**. **Booth Renter** only shows for the **Service Provider** role. See [Add and invite team members](https://heylilo.co/help/team/add-team-members) for the rest of the steps.

## Change someone's type

**Applies to:** Owners, admins and location managers

1. Open **Team** and select the person's name.
2. Select **Role & Work**.
3. Under **Employment Type**, select **Change Type**.
4. Choose **Employee (W-2)**, **Booth Renter** or **Contractor (1099)**.
5. Select **Confirm Changes**. You'll see **Employment type updated**.

Then check their **Compensation** in the same section. If their old pay type doesn't fit the new type, choose a new one and select **Save Changes**.

What changes:

- **To Booth Renter**: they become a **Service Provider** who can always be booked. They need a login. If Lilo asks for an **Email for Invite**, it sends them an invite there.
- **From Booth Renter**: the services they created are turned off, and they can't create new ones.
- **To Contractor**: they set their own hours from then on.
- **To Employee**: you set their hours until you let them change their own.

## Pay details

**Applies to:** Owners, admins and location managers

**Compensation** in **Role & Work** is optional and marked **Coming soon**. Lilo doesn't run payroll, but the **Provider Revenue** report uses these details for its pay columns (see [Reports](https://heylilo.co/help/home-and-reports/reports)). The choices depend on the type:

- **Employee**: **Hourly**, **Salary**, **Commission** or **Hourly + Commission**, plus an **FLSA status**.
- **Contractor**: **Revenue Split**.
- **Booth Renter**: **Rent**, with a **Rent amount** and **Cadence**.

## How it works

- Employees and contractors can have any role. A booth renter is always a **Service Provider**.
- Owners can't become booth renters, and nobody can make themselves one, so **Change Type** doesn't offer **Booth Renter** on an owner's profile or your own.
- Owners and admins don't need approval for their own hours or time off, whatever their type.
- Contractors and booth renters can set their own price and length in **My Services**. Employees can't.
- **Add** only offers **Booth Renter** to some types of business, like salons, barbershops, nail studios and tattoo studios.

## Common questions

### Does the employment type affect payroll or taxes?

No. Lilo doesn't run payroll or create tax forms. The type only changes how Lilo works for them, like who sets their hours.

### Why can't I choose Booth Renter?

When you add someone, **Booth Renter** only shows after you choose **Service Provider** as their role. **Add** also only offers it to some types of business, like salons, barbershops, nail studios and tattoo studios.

### What happens to a booth renter's own services if they become an employee?

Lilo turns off the services they created, so nobody can book them anymore. The services from your menu that they offer stay.

### Can an employee change their own hours?

Yes, if you let them. See [Team schedules and approvals](https://heylilo.co/help/team/schedules-and-approvals).

### Can I change someone's type in the Lilo app?

No. Change it on the web, in their **Role & Work** section.