Best Payroll Software for Paying Contractors in 2022

Table of Contents

As the cryptocurrency market continues to grow and attract more attention, there has been an overwhelming number of options for people who want to invest. But a lot of these cryptocurrencies are only available on the decentralized platform that created them- meaning most investors don’t even know about their opportunities. With so many coins out there with varying price points, it can be difficult tracking down what’s worth your time or money in order to make sure you’re not paying over or under.

The “best payroll software for large business” is a software that helps companies pay their contractors. This type of software helps to reduce the time and costs associated with payroll management.

The top contractor payroll services assist you in paying and onboarding independent contractors as well as collecting documents for end-of-year tax filing. Many even provide direct deposit at no extra charge. It’s vital to compare prices before selecting on a service since some companies provide low-cost monthly plans ($5 per contractor) that you only have to pay for during the months you process contractor paychecks.

Given that one of the advantages of hiring independent contractors is not having to pay taxes on their earnings, it makes sense to look for a service that is Priced reasonably. We looked at ten different types of independent contractor payroll software for small companies and chose our top six.

  • Gusto: Best contractor payroll software (overall)
  • Square Payroll is a payroll service that allows you to pay: For Square POS customers looking for low-cost contractor payroll services, Square Payroll is a payroll service that allows you to pay is the best option.
  • Rippling: HR, payroll, and IT technologies to manage the whole contractor lifecycle are best for tech-heavy firms.
  • Payroll in QuickBooks is ideal for QuickBooks customers who need to pay contractors quickly through direct deposit.
  • Patriot Payroll is a payroll company based in the United is best for small businesses with a few employees that wish to conduct their own payroll.
  • Remote: This option is best for companies searching for a cost-effective approach to pay overseas workers.

Payroll Services for Contractors: A Comparison

Table in fullscreen mode

×

*If you’re paying both contractors and employees, Square Payments enables you to pay them quickly.

**Pricing is based on a quotation from a vendor.

If you’re not sure which contractor payroll solution is right for your company, take our free quiz and we’ll help you figure it out.

Which Payroll Service for Contractors Is Right For You?

We’ll offer you a tailored product match once you answer a few questions about your company.

Gusto: Small Business Contractor Payroll Service of the Year

Gusto

1633371347_728_The-6-Best-ADP-Competitors

4.60 OUT OF 5 STARS FOR THE OVERALL PERFORMANCE

CRITERIA FOR RATING Pricing 5.00 OUT OF 5
HR Benefits 4.75 OUT OF 5
Popularity 5.00 OUT OF 5
Reporting 5.00 OUT OF 5
Features of Payroll 4.75 OUT OF 5
User-Friendliness 3.50 OUT OF 5

What We Enjoy

  • Contractors have lifelong access to a self-service site.
  • Electronic W-9 forms for self-onboarding
  • Prepares and files year-end 1099 reports.
  • There are many possibilities for direct deposit (two-, four-, next-day payouts)
  • In more than 80 countries, we can manage international contractor payments.

What Isn’t There

  • Contractor It takes four days to get a direct deposit. to complete; the other direct deposit methods offered by Gusto are not accessible to contractors.
  • Payments to international contractors are not included in the contractor-only plan; additional Gusto options cost extra.
  • Only a few pre-made reports are available.

Pricing by Gusto

  • Contractor-only plan: $6 per month for each contractor

Gusto’s Paying Employees and Contractors Strategy

  • $39 per month for the core + $6 per employee each month
  • Complete: $39 per month plus $12 per month per employee
  • Concierge: $149/month + $12/month each employee
  • Add-on for international contractor payments: 1.5 percent–2% administrative cost

Gusto received the top rating in our independent contractor payroll software review because it includes all of the necessary capabilities for managing contractor payments. It generates and submits 1099 reports, as well as allowing your new contractors to self-register.

It includes a specific price plan for contractors that waives the $39 monthly basic cost, as well as a cheap bundle for W-2 workers. Gusto also comes with a self-service site that your contractors can use to retrieve the electronic tax forms they have on file, allowing you to give a more customized experience.

Scoring 4.6 out of 5, it would have earned perfect marks had it not been for its limited customizability, tax penalty guarantee—which only includes tax errors that the provider makes (Payroll in QuickBooks’s penalty guarantee includes even your tax mistakes in its highest plan)—and having to upgrade to its highest tier to get expert advice from certified HR professionals. However, users still rated it positively, with many complimenting Gusto for its easy-to-use platform, affordably priced plans, and robust Features of Payroll.

Gusto’s pay processing capabilities are robust, allowing you to handle both employee and contractor payroll with ease. It’s also our top choice for small companies in need of the finest HR payroll software, such as restaurant payroll software and church payroll services.

Gusto’s Highlights

  • Gusto is one of the vendors in our directory that provides Priced reasonably contractor payroll services. You just have to pay $6 per month for each contractor for whom you handle payroll. Additionally, if you add W-2 workers to your staff, you may quickly switch to its full-service payroll. However, if you want to save even more money, Square Payroll is a payroll service that allows you to pay’s contractor-only option is somewhat less expensive than Gusto’s, costing just $5 per contractor every month.
  • Payroll processing is simplified with Gusto, so you don’t have to worry about it. It allows you to execute infinite pay runs, even if you’re processing contractor payments. Contractors might be paid by handwritten checks or direct payments. While Gusto provides two, four, and next-day direct deposit options, contractors may only receive compensation on the fourth day. As a result, if you need quick payments, Payroll in QuickBooks is a good choice since it offers typical next-day direct transfers. You might also look at Square Payroll is a payroll service that allows you to pay, which offers quick payments through its Square Payments system (if you use Square to pay both employees and contractors).
  • Gusto’s worldwide payroll capabilities: If you purchase one of its full-service payroll plans with the international contractor payments add-on, you may pay contractors in more than 80 countries. Remote’s worldwide contractor management solution with pay processing features is free to use if you’re paying overseas contractors.
  • Gusto’s regular contractor payroll services include 1099 form filings that are completed automatically. It will even deliver 1099-MISC paperwork and paycheck alerts to your contractors through email.
  • Contractor self-service portal: Gusto’s self-service portal allows contractors to view their pay information and tax filings online. It also provides new contractor self-onboarding capabilities, such as state new hire reporting, which none of the other suppliers on this list (except Rippling) provide.
  • Custom report builder: You’ve been given access to a report builder that lets you make your own payroll and employee reports.

Check out our Gusto Review.

Square Payroll is a payroll service that allows you to pay is the best option for Square POS users looking for low-cost payroll services for contractors.

Square Payroll is a payroll service that allows you to pay

Best-Online-Payroll-Services-for-2021

4.31 OUT OF 5 STARS FOR THE OVERALL PERFORMANCE

CRITERIA FOR RATING Pricing 5.00 OUT OF 5
HR Benefits 4.50 OUT OF 5
Popularity 3.75 OUT OF 5
Reporting 5.00 OUT OF 5
Features of Payroll 4.75 OUT OF 5
User-Friendliness 2.88 OUT OF 5

What We Enjoy

  • Payroll software that is the cheapest for paying contractors
  • Provides free time monitoring and integrates with Square POS.
  • Contractors are granted access to the Square Payroll is a payroll service that allows you to pay app for self-onboarding and to view payslips/tax forms
  • Year-end contractor tax reports are prepared and filed.

What Isn’t There

  • The processing period for standard direct deposit is four days.
  • Phone support requires a customer code, which might be difficult to get at times.
  • Contractors are not included in new hire reporting services.
  • The number of reporting possibilities is restricted.

Square Payroll is a payroll service that allows you to pay Pricing

  • Contractors are paid just once a month, at a rate of $5 per contractor.
  • Employees and contractors are paid $35 per month plus $5 per person on a monthly basis.

Square Payroll is a payroll service that allows you to pay is our lowest-cost solution ($5 per person monthly) for paying contractors, and, similar to Gusto, you don’t have to pay during months your workers aren’t paid. It also prepares 1099s for each contractor and electronically delivers them. You get even more value if you already use Square POS since it integrates with the payroll software and provides free time tracking. This is great if you’re paying contractors by the hour.

Overall, Square Payroll is a payroll service that allows you to pay earned a score of 4.31 out of 5 in our evaluation. While it offers low-cost and efficient contractor payroll services, what pulled the scores down include its four-day direct deposits, lack of new hire reporting for contractors, and the additional customer code requirement needed to contact phone support. This is unlike most of the other software in this list, where you simply call its support team without having to provide a special code.

Many users praise the company’s price and user-friendly Features of Payroll. However, several customers expressed dissatisfaction with the restricted reporting capabilities and the difficulty in getting phone assistance.

Square Payroll is a payroll service that allows you to pay Key Features

  • Low-cost contractor payroll services: Similar to Gusto, Square Payroll is a payroll service that allows you to pay’s contractor-only plan lets you pay only for months that you processed contractor payroll. However, its monthly fee is cheaper than those of both Gusto and Payroll in QuickBooks.
  • Direct integration with Square POS: Given its direct integration with Square POS, you don’t have to purchase a separate time tracking solution if you want to capture your contractors’ actual work hours. Your staff can simply clock in/out via the Square POS. Best of all, this functionality is free. Gusto doesn’t have a similar tool that you can access for free. QuickBooks has a POS-based time clock, but it doesn’t send tip and commission details to its payroll solution for processing like Square Payroll is a payroll service that allows you to pay does.
  • Seamless time data imports: With Square Payroll is a payroll service that allows you to pay seamlessly connecting with Square POS, you don’t need to manually upload time data to pay contractors and employees. It lets you import actual work hours with just one click.
  • Payroll processing efficiency: Square won’t charge you extra costs if you run payroll as many times as you require. It also files and distributes 1099-MISC forms to your contractors at the end of the year (Rippling and Remote don’t file 1099 forms). Contractors may be paid by cheques or direct deposits, however direct payments often take four days to process. You’ll need a Square Payments account to make next-day and quick payments, and this option is only accessible if you handle both employee and contractor payroll. If you’re not a Square member and need quick payments, Payroll in QuickBooks’s Premium package includes same-day direct transfers.
  • Self-service portal: Aside from receiving pay notifications, contractors can see their payment histories online. They can also update their personal information and download the tax forms that Square Payroll is a payroll service that allows you to pay generates, prepares, and files for them.

Read our Square Payroll is a payroll service that allows you to pay Review

Rippling: Best for Tech-heavy Businesses Needing HR, Payroll & IT Tools to Manage the Contractor Lifecycle

Rippling

1633371350_24_The-6-Best-ADP-Competitors

3.98 OUT OF 5 STARS FOR THE OVERALL PERFORMANCE

CRITERIA FOR RATING Pricing 4.25 OUT OF 5
HR Benefits 4.63 OUT OF 5
Popularity 4.38 OUT OF 5
Reporting 5.00 OUT OF 5
Features of Payroll 2.75 OUT OF 5
User-Friendliness 4.25 OUT OF 5

What We Enjoy

  • HR, payroll, and IT solutions that are modular; you may pick and choose whatever parts you need.
  • Payroll services include the payment of international contractors.
  • Processes for onboarding and offboarding that are robust
  • There are more than 500 applications that are compatible with it.

What Isn’t There

  • Pricing isn’t always straightforward.
  • There isn’t a contractor-only plan.
  • Before you may add additional solutions, you must first acquire the company’s basic workforce management platform.
  • Doesn’t submit 1099 tax forms at the end of the year

Pricing that Shifts*

  • Monthly fee of $10 per worker for a workforce management platform
  • Payroll with full service: $8 per person each month
  • Employee benefits: $6 per month per person
  • HSA/FSA flex benefits and commuting perks: $6 per person per month
  • $100 per month for HR help desk
  • App management costs $8 per month per participant.
  • Monthly device management costs $8 per person.

*Pricing is based on a quotation from a vendor.

Rippling’s feature-rich platform, which automates onboarding and offboarding procedures as well as HR and payroll activities, is ideal for managing the complete contractor lifecycle. You may have contractors electronically sign papers and fill out needed forms like the W9 to establish up their online accounts on the site.

Its IT solutions can assist you in setting up and deploying PCs with company-approved applications to contractors. It can also mail offboarding documentation, cancel app access, delete data from devices, and remotely lock company-assigned laptops when your contractors’ contracts are up.

Scoring 3.98 out of 5 in our evaluation, it received perfect marks in reporting and ratings of 4 and up in nearly all criteria—except payroll functionalities. While Rippling efficiently handles payments for all types of contractors, including those working internationally, it doesn’t file year-end tax reports like Square Payroll is a payroll service that allows you to pay, Gusto, and Payroll in QuickBooks do. Its payroll module is also a paid add-on to its core workforce management platform. However, users still rated Rippling highly as its intuitive interface allows them to easily manage HR, payroll, and IT.

Key Features of Rippling

  • Modular solutions: What’s great about Rippling is its modular solutions that allow you to select modules that you need. This may seem ideal for those who only need pay processing tools to handle contractor payments. However, its payroll module isn’t available as a standalone product—you have to purchase its core employee management platform first. While both cost only $18 per worker monthly, Square Payroll is a payroll service that allows you to pay’s contractor-only plan ($5 per contractor monthly) is more budget-friendly. Plus, Rippling can get a bit pricey if you add other features like app and device management (each costs $8 per worker monthly) and one-on-one HR support ($100 per month).
  • Pay contractors by the hour or at a defined rate with automatic payroll, then deliver payments by two-day direct deposits and handwritten checks. You may also include other sources of income, such as reimbursements for expenses. Rippling’s time tracking feature, which syncs all authorized hours to payroll, is free to use if you wish to record your contractors’ real hours worked. Rippling, like Gusto and Remote, can also manage international payments if you have contractors at your overseas offices.
  • Rippling prepares and delivers 1099 forms to contractors at the end of the year, as well as storing previous and current forms for you. It, like Remote, does not, however, provide 1099 filings.
  • Rippling is the only company on our list that provides IT solutions to assist you in managing the complete contractor lifecycle. It allows you to establish online accounts and passwords for your contractors’ usage of corporate applications. Rippling can assist with provisioning operations if you need to allocate machines. When your contractors depart, it even offers powerful deprovisioning features to let you reclaim and reassign devices, deactivate app access, and remotely lock and erase data from company-assigned PCs.
  • More than 500 applications are compatible: You can link Rippling to a broad range of solutions, including accounting, legal, advertising, sales, analytics, customer relationship management, and collaboration tools, thanks to a vast network of third-party software partners.

Take a look at our Rippling Review.

Payroll in QuickBooks is the best option for QuickBooks users that want quick direct deposits.

Payroll in QuickBooks

Easiest-amp-Cheapest-Ways-to-Accept-Recurring-Payments-in-2021

3.68 OUT OF 5 STARS FOR THE OVERALL PERFORMANCE

CRITERIA FOR RATING Pricing 2.25 OUT OF 5
HR Benefits 2.75 OUT OF 5
Popularity 3.75 OUT OF 5
Reporting 5.00 OUT OF 5
Features of Payroll 4.31 OUT OF 5
User-Friendliness 5.00 OUT OF 5

What We Enjoy

  • Direct deposit choices include same-day and next-day deposits.
  • QuickBooks accounting connection is seamless.
  • Year-end contractor tax forms are created and filed.

What Isn’t There

  • There is no unique contractor strategy in place.
  • Small enterprises may find it too costly.

Payroll in QuickBooks Pricing

  • $45 per month for the core + $4 per person each month
  • $75 per month plus $8 per person per month (premium)
  • Elite membership is $125 per month plus $10 per person every month.

Payroll in QuickBooks is a good option for companies using QuickBooks for accounting because payroll information flows seamlessly to the general ledger. It’s even better if you employ both W-2 and 1099 employees since it offers full-service payroll plans that include tax filing services and fast direct deposits (next- and same-day options).

It scored 3.68 out of 5 in our evaluation. Some of the factors that prevented Payroll in QuickBooks from ranking high on our list include its limited third-party software integrations (its payroll module integrates mostly with other QuickBooks products) and the lack of a contractor-only plan (both Gusto and Square Payroll is a payroll service that allows you to pay offer this). It is also pricier compared to the other services we reviewed, with monthly fees that start at $45 plus $4 per contractor/employee. Despite all these, many users still appreciate its easy-to-use platform that makes processing payroll easy.

Payroll in QuickBooks Key Features

  • Payroll tax filing while on the go: In addition to running payroll, Payroll in QuickBooks lets you file taxes through its mobile apps (for iOS and Android devices). Out of all the contractor payroll services that we reviewed, only Payroll in QuickBooks has this functionality.
  • Fast direct deposits: Unlike Gusto’s two-day direct deposits, Payroll in QuickBooks has a same-day option if you require fast employee and contractor payments. However, this feature is available only for Premium subscribers. While Square Payroll is a payroll service that allows you to pay’s standard direct deposit timeline is four days, it has an option that lets you remit employee payments instantly (if employees use Cash App) or the next day—both provided you subscribe to its Square Payments solution.
  • Efficient pay processing and payroll tax filings: There are no limits to how much money you can make., automatic payrolls, and check payment options are just some of the features that you get with Payroll in QuickBooks. It also automatically calculates, pays, and files payroll taxes, including year-end reporting (W-2s and 1099s), but it only automates federal and state taxes. If you want robust filing services that include local taxes, Gusto and Square Payroll is a payroll service that allows you to pay are better alternatives.

Read our Payroll in QuickBooks Review

Patriot Payroll is a payroll company based in the United: Best for Small Companies Wanting an Affordable Do-It-Yourself Option to Pay Contractors & Employees

Patriot Payroll is a payroll company based in the United

Best-Payroll-Software-for-Accountants-in-2022

3.67 OUT OF 5 STARS FOR THE OVERALL PERFORMANCE

CRITERIA FOR RATING Pricing 4.50 OUT OF 5
HR Benefits 2.00 OUT OF 5
Popularity 5.00 OUT OF 5
Reporting 5.00 OUT OF 5
Features of Payroll 3.38 OUT OF 5
User-Friendliness 3.25 OUT OF 5

What We Enjoy

  • Priced reasonably
  • Payroll options with full service and a do-it-yourself option
  • There are no limits to how much money you can make.
  • Payroll setup is completely free.

What Isn’t There

  • It takes four days to get a direct deposit.
  • The basic plan does not include 1099 filings; this service is an additional cost.
  • There isn’t a contractor-only tier.
  • HR software isn’t up to par.

Patriot Payroll is a payroll company based in the United Pricing

  • Basic Payroll with Self-Assessment Taxes: $10 per month + $4 per person per month
  • Full Payroll Service: $30 per month + $4 per person each month

1099 e-filings (available exclusively to Basic Payroll subscribers):

  • Up to five 1099 e-filings for $20
  • For six to 35 filings, an extra $2 per 1099 is needed.
  • For groups of 36 or more, there is no extra price.

Optional extras:

  • $6 per month plus $2 each employee every month for time and attendance
  • $6 per month + $2 per employee per month for HR software (for handling employee data and records).

Similar to Payroll in QuickBooks and Rippling, Patriot Payroll is a payroll company based in the United doesn’t have a contractor-only plan—this makes it better for companies that pay both contractors and employees. Essentially, what it offers is a Basic Payroll option where you handle tax filings (such as 1099 year-end tax report submissions for contractors) yourself. This is ideal for small companies with only a handful of workers. If you want automated 1099 tax filings (plus employee tax filing), Patriot Payroll is a payroll company based in the United offers full-service plans that include time tracking and employee information management solutions.

Patriot Payroll is a payroll company based in the United scored 3.67 out of 5 in our evaluation. It didn’t rank higher on our list because it doesn’t offer new hire reporting, pay-on-demand options, fast direct deposits, and onboarding tools. Its Basic plan is also more expensive than Square Payroll is a payroll service that allows you to pay’s contractor-only option ($5 per contractor monthly), which already comes with 1099 filings. However, you can subscribe to its Full Service Payroll tier if you want Patriot to handle e-filings of year-end forms. Many users find its full-service packages Priced reasonably, with efficient tools that make payroll and tax filings easy.

Patriot Payroll is a payroll company based in the United Key Features

  • Self-service payroll plan: Priced at $10 monthly plus $4 per contractor/employee monthly, Patriot Payroll is a payroll company based in the United’s Basic option provides you with all the online tools you need to handle both contractor and employee payments while saving you money—provided you’re willing to handle tax filings yourself. This, however, is only optimal for those that have a very small workforce. And if you employ only contractors, we recommend you look for providers with special low-cost contractor payroll services such as Gusto ($6 per contractor monthly) and Square Payroll is a payroll service that allows you to pay ($5 per contractor monthly).
  • Efficient payroll tools: Run payroll as many times as you want without having to pay extra for it. Patriot Payroll is a payroll company based in the United also supports multiple pay schedules and rates, plus you can create your own earning and deduction types or simply use one of its standard options. Aside from manual paychecks, you can pay employees and contractors via direct deposit. However, the turnaround time is four days—longer than Payroll in QuickBooks’s next-day option and Square Payroll is a payroll service that allows you to pay’s instant payouts (if you have a Square Payments account and are paying both employees and contractors).
  • 1099 filings: Patriot Payroll is a payroll company based in the United generates and files 1099 forms at year-end—provided you get one of its full-service packages or pay extra for it if you’re a Basic Payroll subscriber. Note that neither Rippling nor Remote provide 1099 filing services.
  • Multiple full-service payroll options: You have three full-service payroll options to choose from: One comes with payroll tax filings, one with additional HR tools to help you manage employee information, and one with HR, payroll, and time tracking tools. All three are Priced reasonably, with monthly fees ranging from $30–$42 plus $4–$8 per contractor/employee.

Read our Patriot Payroll is a payroll company based in the United Review

Remote: The Best Option for Companies Are you looking for a way to be paid as an international contractor for free?

Remote

Best-Payroll-Software-for-Paying-Contractors-in-2022

3.59 OUT OF 5 STARS FOR THE OVERALL PERFORMANCE

CRITERIA FOR RATING Pricing 4.75 OUT OF 5
HR Benefits 4.38 OUT OF 5
Popularity 3.75 OUT OF 5
Reporting 5.00 OUT OF 5
Features of Payroll 1.88 OUT OF 5
User-Friendliness 3.25 OUT OF 5

What We Enjoy

  • Tools for managing contractors that are completely free
  • There are 178 countries where it is available.
  • Global contractor payments with one click with fee-free local currency payouts

What Isn’t There

  • Extra fees apply to credit card payments.
  • It doesn’t have the ability to monitor time.
  • Does not submit 1099 forms for contractors in the United States.

Pricing from afar

  • Contractor Management: $0; payments made through credit cards have a 3% service fee for contractor management; a 3% service charge is added to credit card payments.

Employee Pay Plans for Employees Working From Home

  • Employer of Record (EoR): $349 per month for each employee
  • Payroll services on a global scale: costed on a case-by-case basis

Remote offers international HR and payroll services, including a full-service EoR option to assist you in hiring foreign personnel, processing local and global payroll, providing competitive benefit packages, and more. It features a free contractor management solution for individuals with overseas contractors to assist ease onboarding and payment procedures (Rippling charges for international contractor payments).

It also features contractor invoicing capabilities, which enable both local and foreign contract employees to prepare and submit payment invoices. They can also create online profiles on Remote to help you manage contractors, create agreements that are legal in your area, and review and approve bills.

Scoring 3.59 out of 5 in our evaluation, Remote earned ratings for 4 and up in reporting, HR Benefits, and pricing. It’s highly rated by users given its user-friendly interface and helpful support team. While it has efficient contractor payroll tools and supports direct deposits, it scored the lowest in payroll functionalities because it doesn’t file 1099 forms at year-end and payments made via credit cards have a 3% service fee. Remote also lacks phone and chat support—if you need assistance, you can either check its online help center or contact its support team via email.

Key Features of the Remote

  • Tools for managing contractors that are completely free: Remote is the only provider on our list that helps you manage international contractors at zero cost. Its free solution comes with contractor invoicing, localized contracts, automated approvals, and built-in security to protect your invention and intellectual property rights.
  • Contractor payments with a single click: Contractor invoices will display on your Remote dashboard instantly. With just one click, you can approve invoices and even set up automatic approvals for certain transactions. The accepted payments are subsequently sent to the contractors’ accounts by direct deposit (processing times ranging from two to nine days) or credit card (this comes with a 3 percent service charge).
  • Remote handles payments in over 170 countries thanks to its banking network, which enables it to pay contractors in their native currencies. Remote’s billing statements to you for real contractor payments, on the other hand, will not be in multiple currencies. You simply need to pay in the currency that you and Remote agreed on, which is also included in your provider agreement.
  • Customizable localized contracts: Remote provides localized contracts that are tailored to each country’s labor laws. You may even submit full contracts to contractors and have them electronically sign them. Remote also gives you access to online resources written by its legal staff to assist you comprehend the regulations governing contract work in each region.

Check out our Remote Review.

Are you looking for something different? Payroll4Free.com is a fantastic alternative if you want to pay both workers and contractors for free—as long as you have 25 or less employees and don’t mind doing W-2/1099 tax filings yourself. Other alternatives may be found in our buyer’s guides to the best online payroll services and best payroll software.

How Did We Pick the Top Contractor Payroll Services?

We started our search with 10 reputable payroll companies that process payroll for contractors. Using a 5-star scale that we designed specifically to evaluate contractor payroll services, we looked for essential features like automatic pay runs, direct deposits, and year-end reporting. We also compared each system’s User-Friendliness, pricing, customer support, and online user reviews.

Click through the sections in the box below to view our complete assessment criteria.

25% of the overall score

Having a direct deposit option with a quick turnaround (two days) plus 1099 form preparation and delivery were most important. Payroll solutions with the capability to pay employees, aside from contractors, were also given an additional point. While all the contractor payroll services we reviewed offer efficient pay processing tools, we recommend Payroll in QuickBooks if you want next- and same-day direct deposits and Square Payroll is a payroll service that allows you to pay since it provides the option to transfer funds instantly—if you have a Square Payments account and are paying both employees and contractors.

25% of the overall score

Services with contractor-specific plans were rated more favorably (they’re cheaper and more flexible), including those that have transparent pricing and charge you a low rate altogether. Both Gusto and Square Payroll is a payroll service that allows you to pay earned perfect scores in this criterion, but if you want the cheapest contractor plan, consider Square Payroll is a payroll service that allows you to pay. It only costs $5 per contractor monthly, as compared to Gusto’s monthly fees of $6 per contractor.

20% of the overall score

Payroll software that connects with standard third-party software, such as time tracking providers When I Work and Homebase, is essential for small firms. Providers with easy-to-access how-to instructions and phone help were scored well in addition to having an intuitive UI. All of the payroll providers we looked at offer user-friendly interfaces, but Rippling is an excellent option if you require extensive third-party software connections, since it integrates with 500+ programs.

15% of the overall score

Online onboarding, which means giving contractors the option to fill out onboarding forms like the W-9 electronically, is the top criterion; following closely behind is the ability to offer a self-service portal that contractors can use to see payments made, edit W-9 information, and print 1099 forms. Rippling, Gusto, and Square Payroll is a payroll service that allows you to pay provide all these, while Payroll in QuickBooks and Patriot Payroll is a payroll company based in the United lack onboarding tools for contractors. Remote, on the other hand, only provides basic contractor onboarding.

10% of the overall score

We considered online user reviews—including those of our competitors like G2 and Capterra—based on a 5-star scale, wherein any option with an average of 4+ stars is ideal. Also, software with 1,000 or more reviews on third-party sites is preferred. Of the six payroll solutions included in this guide, only Gusto and Patriot Payroll is a payroll company based in the United got perfect marks here. The limited number of online user reviews available (below 500) as of this writing pulled the scores down for the other four.

5% of the overall score

Basic payroll reports generated by software were graded positively. We also provided bonus points to companies that enable users to customize reports and/or generate their own reports. All of the suppliers we looked at scored highly in this category.

*Percentages based on total score

Conclusion

Consider a firm that offers a unique price plan for contractors when looking for the proper option for paying contractors. You should also look at how it handles W-9 forms and 1099s. Does it assist you in preparing and filing them? Contractor payroll services with optimized online procedures might make your life a whole lot simpler.

We discovered that Gusto provides the finest functionality at a reasonable price for small firms who use contract workers. It’s simple to learn and use, and it keeps you in compliance with tax reporting requirements. It’s even easy to add staff to your workflow. Become a Gusto member now.

Gusto is a great place to visit.

The “list of payroll systems” is a list of the best payroll software for paying contractors in 2022. The list includes some big names, as well as some small ones.

Related Tags

  • payroll software for independent contractors
  • best payroll software for 1099 employees
  • gusto payroll
  • free payroll software for 1099 employees
  • independent contractor payroll
Previous Post
Next Post