Add Person starts a guided setup. It asks the most important question first, because everything after it forks.
Employee or contractor
A W-2 employee owes you an I-9 and a W-4, and you withhold their taxes. A 1099 contractor owes you a W-9 and their own insurance, and you do not withhold. Getting it wrong is expensive because the liability is the payer's. If you are unsure, see Employee or contractor.
What it collects
The setup covers identity and contact, pay type and rate, trade classification and state, then the paperwork for their type. Trade and state decide workers' comp and state tax, so answering them here makes the first pay run right. App access is offered in the same flow. A pay preview shows a typical paycheck.
Pro tip: Finish the whole setup. The parts people skip, trade and state, are the ones that make the first pay run wrong.
Let them do their own paperwork
Send the worker a link instead. They enter their own details and sign from their phone, and the signed documents come back into their record. The I-9 is not finished when the worker signs: it needs your employer section, so it stays incomplete until you do your half.