Importing contractors as employees? No option?

My client only uses contractors for their projects. (billable hours is the foundation of their services). I have them entered as contractors in QBO, but only employees will show up in the project reporting hours (See screenshot: only the employee is showing up with their cost rate and cost properly coming over. Not the contractor on top). I see in QB Time that I can import Vendors as Team Members, but no option to import Contractors as Team Members. Is this why they are now showing up in QBO reports? If so, why can't I access that option - to import contractors as Team Members? What is the alternative set up? Do I set up my contractors as Vendors instead and they're imported that way? I've spent over 10 hrs accumulatively on phone support about this, and no one seems to be able to figure this out. 

I need these reports to show up correctly. Not having the costs in there is really confusing my client. I am trying to add a screenshot to this page but get an authentication error (red bar).