Best Payroll Software for Paying Contractors in 2023


The best contractor payroll services help you pay and onboard independent contractors and collect the forms you’ll need for end-of-year tax reporting. Many even offer direct deposit at no additional cost.

Before deciding, it’s important to evaluate pricing because some providers have low-cost plans that you only have to pay for during the months you process a contractor paycheck. Given that one of the benefits of using independent contractors is the savings from not having to pay taxes on their income, it makes sense to consider a service that’s priced affordably.

We evaluated 13 independent contractor payroll software for small businesses and narrowed it down to our top eight.

  • QuickBooks Payroll: Best overall contractor payroll services and for those needing a low-cost payment plan
  • Square Payroll: Best for retail and restaurant businesses, including Square POS users
  • Gusto: Best contractor payroll services with new hire reporting
  • OnPay: Best for companies hiring contractors who only have individual taxpayer identification numbers (ITINs)
  • Rippling: Best HR, payroll, and IT tools to manage the entire contractor lifecycle
  • Deel: Best global contractor payroll tool with robust payment options (such as via cryptocurrency and a contractor card)
  • SurePayroll: Best affordable contractor payroll with do-it-yourself (DIY) tax filings, although it also has a full-service package
  • Remote: Best for businesses looking for a reasonably priced international contractor payroll service

If none of the above software appeal to you, and you only need basic tools to pay contract workers, then we recommend Found. It didn’t get as high a score in our evaluation as the others on our list and has very limited HR tools, but it lets you manage contractor payments for free—provided you use its business banking solution. It even provides bookkeeping, invoicing, and tax solutions for small businesses, solopreneurs, and freelancers.

Visit Found

Best Contractor Payroll Services Compared

All the payroll systems we reviewed can handle pay processing for both employees and contractors. These software providers also offer unlimited pay runs, compliance support, and 1099 tax forms (except SurePayroll, unless you sign up for its full-service payroll plan). Here are some of the standout features.

Looking for something else? If you want basic HR tools, including the ability to pay both employees and contractors, then check our buyer’s guides on the best online payroll services and best payroll software.

Quiz: Which Contractor Payroll Service Is Right for You?

Want to know the differences between contractors and employees? Read our 1099 vs W-2 workers guide.

QuickBooks Payroll: Best Overall Contractor Payroll Software


  • Next- and same-day direct deposit options
  • Seamless integration with QuickBooks accounting
  • Generates and files year-end contractor tax forms
  • Affordable contractor payments plan
  • Unlimited and automatic pay runs


  • Contractor plan’s 1099 efiling services cost extra (this includes QuickBooks printing and mailing the forms to contractors)
  • Doesn’t file new hire reports for contractors
  • Limited integration options (of non-Intuit products); requires a QuickBooks Accounting account to unlock full integrations

QuickBooks Payroll is our top-recommended solution for paying contract workers mainly due to its affordable contractor plan—which is the lowest-priced service among the providers we reviewed. It’s also 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).

This provider earned an overall rating of 4.61 out of 5 in our evaluation, with perfect scores in pricing and reporting. However, limited HR tools and third-party software integrations (mostly integrates with QuickBooks products), including the lack of new hire reporting for contractors, cost it some points.

QuickBooks Payroll Overview

  • Contractor payments: $15 monthly for up to 20 contractors (plus $2 for each additional worker)
    • For businesses that only pay contract workers

QuickBooks Payroll Plans for Paying Employees and Contractors

  • Payroll Core: $45 per month plus $5 per person monthly
    • Includes full-service payroll, next-day direct deposit, federal and state tax filings and payments, and access to 401(k) plans and benefits
  • Payroll Premium: $75 per month plus $8 per person monthly
    • Core plus same-day direct deposit; federal, state and local tax payments and filings; workers’ compensation administration; and HR support center
  • Payroll Elite: $125 per month plus $10 per person monthly
    • Premium plus multiple state tax filing, project tracking, personal HR adviser, tax penalty protection up to $25,000 per year, and expert setup

  • Fast direct deposits: QuickBooks Payroll’s contractor payments plan comes with next-day direct deposits—faster than the standard processing timelines offered by Gusto and Square Payroll for paying contract workers (which is four days). If you employ and pay both employees and contractors, you get same-day direct deposits, provided you subscribe to the QuickBooks Payroll Premium plan.
  • Contractor self-setup: Contract workers can set up an account online, enabling them to complete W-9s and provide banking information for direct deposit payments.
  • Efficient pay processing and payroll tax filings: Unlimited pay runs, automatic payrolls, manual check payment options, and year-end reporting (W-2s and 1099s) are just some of the features you get with QuickBooks Payroll plan. However, local tax filings are available only in higher tiers. If you want robust filing services without having to upgrade plans, the other providers on our list (except Deel and Remote) are better alternatives. Also note that if you’re on the contractor payments plan, generating 1099s through its platform is free, but costs extra if you want QuickBooks to print and mail the forms to contractors.

Square Payroll: Best for Restaurants, Retail Shops & Businesses Using Square POS


  • Affordable payroll software for paying contractors
  • Integrates with Square POS and provides free time tracking
  • Contractors are granted access to the Square Payroll app for self-onboarding and to view payslips/tax forms
  • Preps and files year-end contractor tax reports
  • Automatic and unlimited payroll
  • Offers fast direct deposits, including an instant payment option


  • Standard direct deposit has a four-day processing time
  • A Square Payment account is needed for next-day direct deposits and instant payments
  • Instant contractor payouts is available only if you process both employee and contractor payroll
  • Phone support requires a customer code; difficult to reach at times
  • New hire reporting services don’t include contractors
  • Reporting options are limited

Square Payroll is one of our top-recommended contractor payroll software because it offers solid pay processing tools and a low-cost solution ($6 per person monthly) for paying contractors. Similar to Gusto, you don’t have to pay during months your workers aren’t paid. It also prepares 1099s for each contractor and delivers them electronically. 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 earned a score of 4.47 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 on this list, where you call its support team without having to provide a special code.

Square Payroll Overview

  • Pay contractors only: $6 per contractor monthly
    • Includes unlimited pay runs, automatic taxes, time tracking tools, and 1099 forms at end-of-year
  • Pay employees and contractors: $35 per month plus $6 per person monthly
    • Includes unlimited pay runs, payroll tax filings, year-end tax reports, time tracking tools, and access to employee benefits

  • 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 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 point-of-sale (POS)-based time clock, but it doesn’t send tip and commission details to its payroll solution for processing as Square Payroll does.
  • Efficient pay processing: You can run payroll as many times as you need—Square won’t charge you additional fees. It even files 1099-MISC forms at year-end and mails these to your contractors (Remote only generates 1099 forms). You can pay contractors through checks and direct deposits, although its standard direct deposit turnaround time is four days. While it offers next-day and instant payments, you need a Square Payments account—plus, this option is available only if you process both employee and contractor payroll. If you’re not a Square user and want fast payouts, QuickBooks Payroll offers next-day direct deposits for contract workers, provided you’re on its contractor payments plan.
  • 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 generates, prepares, and files for them.

Gusto: Best Contractor Payroll Service With New Hire Reporting


  • Self-service portal, which contractors can access for a lifetime
  • Self-onboarding with electronic W-9 forms
  • Preps and files 1099 year-end reports
  • Multiple direct deposit options (two-, four-, and next-day payouts)
  • Can handle international contractor payments in more than 90 countries


  • Contractor direct deposits follow a four-day processing timeline; Gusto’s other direct deposit options are not available for contractors
  • International contractor payments cost extra; requires that you have at least one local contractor added to the “contractor-only” plan
  • Limited premade reports

Gusto scored the third highest in our independent contractor payroll software evaluation since it provides all the essential tools you need to manage contractor payments. It prepares and files 1099 reports and lets your new contractors onboard themselves. Gusto even has a special pricing plan for contractors and can handle international payments if you have global contractors.

With a 4.43 out of 5, Gusto would have earned a higher overall rating had it not been for its limited customizability and tax penalty guarantee, which only includes tax errors that the provider makes (QuickBooks Payroll’s penalty guarantee includes even your tax mistakes in its highest plan). You also have to upgrade to its highest tier to get expert advice from certified HR professionals. Plus, its contractor-only plan is pricier than QuickBooks Payroll’s ($35 plus $6 per worker monthly vs $15 monthly for 20 contractors plus $2 for each additional worker).

Gusto Overview

  • Contractor-only plan: $35 plus $6 per contractor monthly
    • Includes unlimited contractor payments, new hire reporting, four-day direct deposits, and 1099-NECs at end of year
  • International contractor payments add-on: Custom-priced

Gusto Plans for Paying Employees and Contractors

  • Simple: $40 per month plus $6 per employee monthly
    • Includes full-service payroll, tax filings, payroll tax filings, single-state pay processing, two-day and four-day direct deposits, employee benefits, new hire reporting, offer letter templates, onboarding, and basic support
  • Plus: $80 per month plus $12 per employee monthly
    • Simple plus next-day direct deposits, time and paid time off (PTO) tracking, applicant tracking, basic job postings, project tracking, multistate payroll, and full support with extended support hours
  • Premium: Custom priced
    • Plus, along with performance reviews, surveys, full-service payroll migration, access to HR experts, direct line to priority phone and email support, and a dedicated account manager

  • Efficient pay processing: With Gusto, you don’t have to worry about handling payroll yourself. Even if you’re processing contractor payments, it provides you with automatic and unlimited pay runs. You can pay contractors via manual checks and direct deposits. While Gusto has two-, four-, and next-day direct deposit options, it only offers four-day payments for contractors. So, if you require fast payments, we recommend QuickBooks Payroll because of its standard next-day direct deposits, or Square Payroll, for instant payouts through its Square Payments solution (if you use Square to pay both employees and contractors).
  • International payroll capabilities: Gusto can help you pay contractors in more than 90 countries—provided you get its international contractor payments add-on and subscribe to either its full-service payroll packages or have one domestic worker under its “contractor-only” plan. However, if you only need to pay international contractors, consider Remote instead. It has an affordable global contractor management solution that lets you pay contract workers in 170-plus countries (Gusto’s global payroll tool only covers more than 90 countries).
  • Automatic tax reporting: Automated filings of 1099 forms are included in Gusto’s standard contractor payroll services. It will even send your contractors’ 1099-MISC forms and payday notifications via email.
  • Self-service portal for contractors: Contractors can access their pay information and tax forms online through Gusto’s self-service portal. It also offers self-onboarding tools for new contractors, including state new hire reporting—a functionality the other providers in this list (except Rippling and Deel) don’t offer.
  • Custom report builder: You are granted access to a report builder that allows you to create custom payroll and employee reports.

OnPay: Best for Companies Hiring Contractors Who Only Have ITINs


  • User-friendly interface
  • Multiple payment options (direct deposits, pay cards, and manual checks)
  • Its system lets you add and pay contractors who only have an ITIN (no Social Security and tax ID numbers available)


  • Access to two- or four-day direct deposits depends on OnPay’s risk assessment
  • Limited third-party software integrations
  • Lacks a low-cost contractor-only plan

OnPay makes paying and hiring contractors easy for business owners. Apart from full-service payroll, automated filings—including 1099-NEC forms—and onboarding tools, it allows you to add independent contractors who don’t have federal tax or Social Security numbers into its system—provided they have ITINs (individual tax ID numbers). None of the contractor payroll services we reviewed have this feature.

Scoring 4.14 out of 5 in our evaluation, OnPay received perfect marks in reporting and ratings of 4 and up in ease of use, HR functionalities, and in our expert review. It lost points because it has qualifying requirements for two-day direct deposits, limited software integration options, and doesn’t offer a contractor-only plan like QuickBooks Payroll, Gusto, Deel, Remote, and Square Payroll do.

OnPay Overview

  • $40 plus $6 per employee or contractor monthly
    • Includes full-service payroll, unlimited pay runs, automated tax filings—including 1099-NEC forms—new hire onboarding, and access to employee benefits

  • Easy contractor system enrollments: Most independent contractor payroll software requires you to collect the worker’s name, address, and tax number like Social Security to verify an individual’s right to work in the US and then add their details to their systems. With OnPay, you can use the contractor’s ITIN to start system enrollment processes and file 1099 forms. While you can encourage the contract worker to get a Social Security number, you do need to have your contractor complete and submit an affidavit or IRS-approved document for failing to get a valid tax ID.
  • Full-service payroll: OnPay can run unlimited payroll and process multistate payments at no extra cost. Similar to Gusto, it lets you pay employees by direct deposits, pay cards, and manual checks. However, you have to undergo OnPay’s risk assessment to determine eligibility for two- and four-day direct deposits. This is unlike the other providers in this guide, which don’t have assessment protocols for direct deposits.
  • Automated taxes: Regardless of whether you’re processing payments for employees or contractors, OnPay will withhold the applicable payroll taxes per pay run, remit tax payments, and generate the required tax forms, including 1099-NEC, at year’s end.
  • Employee self-service tools: Employees and contractors you’ve hired can do self-onboarding and complete their information online—although you may also opt to input all of their details directly into OnPay. Aside from new hire onboarding, your workers can also access their payslips, employment documents, and tax forms through OnPay’s self-service portal.

Rippling: Best All-in-One HR, Payroll & IT Solution For Managing the Contractor Lifecycle


  • Modular HR, payroll, and IT solutions; you can select the modules you need
  • Payroll capabilities include paying international contractors
  • Robust onboarding and offboarding processes
  • Integrates with 500-plus apps


  • Pricing isn’t all transparent
  • Time tracking, benefits administration, HR advisory services, and IT tools are paid add-ons
  • You have to purchase its core workforce management platform before you can add other solutions

Rippling is great for managing the entire contractor lifecycle given its feature-rich platform, which automates onboarding and offboarding processes as well as HR and payroll tasks. To set up contractors’ online profiles on the platform, you can have them electronically sign documents and complete required forms, like the W-9 form.

If you need to assign computers with company-approved apps to contractors, its IT tools can help you set up and deploy devices. When your contractors have ended their contracts with you, it can send offboarding documents, revoke app access, and remotely lock company-assigned computers.

Scoring 4.13 out of 5 in our evaluation, it received 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 lacks the contractor-only plan that both Square Payroll and Gusto offer. It also only supports payments via direct deposits and manual checks. This is unlike Gusto, Square, Deel, and OnPay, which have multiple payment options that even include either pay cards or a pay-on-demand feature.

Rippling Overview

  • Rippling plan*: $35 plus $8 per employee monthly; this includes Rippling’s core workforce management platform, employee onboarding and offboarding, full-service payroll, time tracking, and software integrations

Other Per-module Costs*

  • App, device, and computer inventory management: $8 per employee monthly
    • Includes IT tools to manage business apps and computer provisioning and deprovisioning processes
  • Benefits administration: Pricing varies, depending on your insurance broker
  • HR help desk: Custom-priced:
    • One-on-one email/phone support from HR experts
  • Global payroll: $20 per employee or contractor monthly
    • Payroll services for processing global payments for employees or contract workers
  • EOR services: $599 per employee monthly

*Pricing is based on a quote we received. Contact Rippling to discuss your requirements and get a custom quote.

  • 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. Plus, Rippling can get a bit pricey if you add other features like app and device management (an additional $8 per worker monthly). For a more budget-friendly option, we recommend QuickBooks Payroll as its contractor payments plan only costs $15 monthly for 20 contractors (plus $2 for each additional worker).
  • Automatic pay runs with international payroll capabilities: Pay contractors either by the hour or at a set rate and then send payments through two-day direct deposits and manual checks. You can also add other earning types, such as expense reimbursements. Similar to Gusto, Deel, and Remote, Rippling can even handle international payments in case you have contractors working in your global offices.
  • Apps and device management: Rippling offers IT tools to help you manage the entire contractor lifecycle. It lets you create online accounts and passwords for company apps that your contractors will use. If you need to assign computers, Rippling can help with the provisioning processes. It even has robust deprovisioning tools to help retrieve and reassign devices, disable app access, and remotely lock and wipe data from company-assigned computers when your contractors leave.
  • Integrates with more than 500 apps: With an extensive network of third-party software partners, you can connect Rippling to a wide variety of solutions, such as accounting, legal, advertising, sales, analytics, customer relationship management, and collaboration tools.

Deel: Best Global Contractor Payroll With Robust Payment Options


  • Global payroll tools cover more than 150 countries
  • User-friendly platform
  • Assigns a dedicated customer success manager (CSM) to its clients
  • Multiple payment options, such as via bank transfer, crypto, bitcoin, digital payment processors, and a contractor card


  • Dedicated CSM is not provided to small business (only available to enterprises)
  • Limited HR features
  • Lacks time tracking tools
  • Global direct deposits take two to seven business days, depending on location

While Deel can handle payments for US-based contractors, its online solutions and services are best for companies that plan to expand business operations in other countries. Its EOR services can help you find, hire, and pay global employees and contractors in 150-plus countries. What sets Deel apart from similar international payroll solutions and the other contractor payroll services on our list is its robust payment options. Apart from bank transfers, you can pay workers via digital payment processors, such as Wise and PayPal, and in Bitcoin or cryptocurrency.

In our evaluation, Deel earned an overall rating of 3.76 out of 5, with high marks (4 and up) in HR features, reporting, and our expert review. However, its lack of new hire reporting for contractors, limited integration options, and pricey contractor-only payroll plan (it’s more expensive than Rippling, QuickBooks Payroll, Remote, Gusto, and Square Payroll) prevented Deel from ranking higher on our list.

Deel Overview

  • Contractors: Starts at $49 per contractor monthly
    • Deel offers three global contractor plans; higher tiers include contractor misclassification protection services and access to global HR support
  • EOR Employees: Starts at $599 per employee monthly
    • EOR services for hiring and paying international employees via Deel-owned local entities
  • Direct Employees: Start for free (via Deel HR)
    • Ideal for companies that onboard and pay employees hired through their own local entities
  • Deel HR: Free for companies with up to 200 employees
    • This is Deel’s HR solution for managing your workforce, from direct-hire employees to international workers

  • Multiple payment options: Deel has robust payment options—offering up to 15 ways to pay global contractors. It can send payroll payments via bank transfer, Revolut, PayPal, Wise, Payoneer, Coinbase, and Binance. None of the other contractor payroll services on our list have this many payment methods.
  • Deel contractor card: With the “Deel card” contractors can spend their earnings securely through in-store or online transactions. It’s similar to a debit card, and your workers can opt to keep the funds on their Deel card for as long as they want. However, it only accepts the USD currency and, as of this writing, is available only in Argentina, Colombia, Georgia, Mexico, Nigeria, Pakistan, Peru, Philippines, Serbia, Turkey, the United Kingdom, and the US.
  • Dedicated support: Deel’s new clients get dedicated CSMs to help them with the initial system setup and serve as the point person whenever they have problems with their accounts. However, this is only offered to large businesses.

SurePayroll: Best Affordable Contractor Payroll With DIY Tax Filings


  • Unlimited and automatic payroll
  • Has reasonably priced full-service payroll and “No Tax Filing” plans
  • Has US-based support with extended weekday and weekend hours


  • Local tax filing in Ohio and Pennsylvania and multistate filings require add-on monthly fees
  • Lacks global payroll capabilities
  • Integrates with only time clock and accounting software; third-party integrations cost extra

SurePayroll is one of the most reasonably priced contractor payroll services on our list, providing a full-service package with unlimited pay runs and tax filing solutions for only $29.99 plus $5 per employee monthly. This is lower than Gusto, Remote, and Deel. For small business owners who only have a handful of contract workers and prefer managing payroll taxes themselves, SurePayroll’s “No Tax Filing” plan ($19.99 plus $4 per employee monthly) has all the tools you need to calculate salaries, taxes, and other deductions as well as pay contractors via direct deposits.

It scored 3.72 out of 5 in our evaluation, with ratings of 4 and up in ease of use, reporting, and in our expert review. The limited HR features and payment options that it offers, along with its lack of a contractor-only payroll option, cost this provider several points.

SurePayroll Overview

  • No Tax Filing plan: $19.99 plus $4 per employee monthly
    • Includes unlimited pay runs, two-day direct deposits, online pay stubs, automatic pay and tax calculations, and new hire reporting
  • Full-Service plan: $29.99 plus $5 per employee monthly
    • No Tax Filing plan plus payroll tax filings and year-end tax reporting

  • Automatic pay runs: You can set SurePayroll to process your regular pay runs automatically. This helps you save time from having to go through its online platform to run payroll, especially if you expect no changes to it. However, it allows you to make payroll revisions should you need to. You can also turn its automatic pay runs on and off at any time.
  • Tax calculation and filing guarantee: SurePayroll offers a tax penalty guarantee for its Full Service and No Tax Filing plans, wherein it will cover the associated penalties and fines if its representatives make payroll tax filing or calculation mistakes. However, if you want more robust coverage, consider QuickBooks Payroll, as its tax penalty guarantee covers mistakes that you and the provider may make (provided you sign up for its highest payroll plan).
  • Customer support: If you have questions about SurePayroll’s services and online solutions, you can easily contact its support team via chat, phone, or email. It even offers extended weekday and weekend hours.

Remote: Best for Businesses Needing Affordable International Contractor Payments


  • Reasonably priced contractor management plan with time tracking tools
  • Available in 178 countries
  • One-click global contractor payments with fee-free local currency payouts


  • Payments through credit cards have extra charges
  • Doesn’t file 1099 forms for US contractors (only generates 1099s)

Remote provides international HR and payroll services, including a full-service EOR option to help you hire international employees, process local and global payroll, offer competitive benefits packages, and more. For those with global contractors, it has a reasonably priced contractor management solution to help simplify onboarding and payment processes.

It also has contractor invoicing capabilities that allow both local and international contract workers to create and send invoices for payment. They can even set up online profiles on Remote to help you easily manage contractors, build agreements that comply with local laws, and review and approve invoices.

Scoring 3.53 out of 5 in our evaluation, Remote earned ratings for 4 and up in reporting, HR features, pricing, and our expert review. 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, plus 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.

Remote Overview

  • Contractor Management: $29 per contractor monthly; payments made through credit cards have a 3% service fee
    • Includes contractor payments, document management, contractor invoice approvals, onboarding tools, and 1099 forms for US contractors

Remote Plans for Paying Employees

  • EoR: $699 per employee monthly
    • Includes automated employee payments, hiring and legal compliance management, employee benefits, invention and intellectual property (IP) rights protection, and access to local HR and legal experts
  • Global payroll: Custom priced
    • Includes payroll services, invention and IP rights protection, and legal compliance management

  • Efficient contractor management tools: This solution comes with contractor invoicing, automated approvals, and built-in security to protect your invention and intellectual property rights.
  • One-click contractor payments: Invoices that contractors send will appear automatically in your Remote dashboard. You can approve invoices with one click and even set up automatic approvals for specific transactions. Remote then distributes the approved payments to the contractors’ accounts either through direct deposit (processing timelines range from two to nine days) or via credit card (this comes with a 3% service charge).
  • Local currency payouts but with simplified billing: Remote supports payments in more than 170 countries, given its financial network that allows it to pay contractors in their local currencies. Note, however, that Remote’s billing statements to you to cover actual contractor payouts won’t be in different currencies. You need only to pay in the currency that both you and Remote agreed on, which is also indicated in your agreement with the provider.
  • Customizable localized contracts: Remote offers customizable contracts localized to comply with each country’s local labor regulations. You can even send the completed contracts to contractors and have them sign these electronically. Remote also provides access to online guides that have been created by its team of legal experts to help you understand each country’s laws that pertain to contract employment.

How We Evaluated the Best Contractor Payroll Services

We started our search with 13 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 ease of use, pricing, customer support, and online user reviews.

To see our full evaluation criteria, click through the tabs on the box below.

25% of 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.

25% of 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.

20% of Overall Score

Small businesses need payroll software that integrates with common third-party software, such as time tracking providers When I Work and Homebase. In addition to having an intuitive interface, providers with how-to guides and phone support that’s easy to access were rated favorably.

15% of 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.

10% of Overall Score

In this criterion, we use our expert opinion to assess whether the software’s ease of use, and the width and depth of its payroll and HR tools are ideal for small business owners. We also evaluated each system’s popularity based on feedback that users left on third-party review sites, such as G2 and Capterra.

5% of Overall Score

Software basic payroll reports were rated favorably. We also gave extra points to those that offer report customization and/or have functionality allowing users to create their own reports.

*Percentages of overall score

Bottom Line

When finding the right payroll solution for contractors, consider a company with a special pricing plan for contractors. You’ll also want to evaluate how it handles W-9 forms and 1099s—does it help prepare and file them? Contractor payroll services with online processes that are streamlined can make your life much easier.

We found that QuickBooks Payroll offers the best features at a budget-friendly price for small businesses using contract help. It is easy to learn and use and ensures you stay compliant with tax reporting regulations. It even seamlessly integrates with QuickBooks Online Accounting, making it easy for you to update your general ledger for contractor payments.

Sign up for a QuickBooks Payroll plan today.

Visit QuickBooks Payroll

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