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Contractor payroll software program instruments make sure you pay your unbiased contractors on time whereas releasing up your human useful resource workers and accountants in order that they’ll consider day-to-day enterprise duties.
For many small companies more often than not, we discover that Square Payroll is one of the best contractor payroll service. Sq.’s contractor payroll plan has no month-to-month base charge and will be paused seasonally with no charge, which makes it each versatile and reasonably priced for companies in lots of industries.
On this article, we overview the highest eight contractor payroll companies of 2023, Sq. included, that will help you help your workers and enhance your payroll operations.
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Finest contractor payroll companies: Function comparability
Plan and pricing data updated as of 11/12/2023.
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The highest contractor payroll options for 2023
Sq. Payroll: Finest total contractor payroll
Our star ranking: 4.2 out of 5
Sq. Payroll is a complete payroll resolution designed particularly to help small-business payroll. With Sq. Payroll, you’ll be able to simply pay W-2 staff and 1099 contractors, course of year-end data, file and pay taxes and entry useful help assets. The software program additionally comes with an app for Android and iOS gadgets that makes it straightforward to handle your contractor payroll from anyplace.
Why we selected it:
We love that Sq. Payroll’s reasonably priced pricing construction makes it accessible to companies of all sizes. With its intuitive interface and easy options, Sq. Payroll is a good selection for startups searching for an environment friendly option to handle their payroll wants.
Our Square Payroll review can let you know extra about Sq.’s costs and plans.
Pricing
- Contractor-only plan: Prices simply $6 per contractor per 30 days.
- Worker and contractor payroll plan: Base charge is $35 per 30 days plus $6 per worker or contractor paid per 30 days.
Options
- Automated limitless payroll runs.
- Integration with Sq. Level of Sale.
- Standalone contractor-only plan.
- Optionally available Money App on-demand fee.
- Prolonged weekday customer support hours.
Execs
- Intuitive person interface.
- Automated built-in time monitoring.
- 1099-NEC tax type preparation and mailing included free.
- No base charge for contractor-only plan.
Cons
- Fewer payroll stories than extra strong payroll instruments.
Gusto: Finest for third-party integrations
Our star ranking: 4.6 out of 5
Gusto is a contractor payroll software program best for first-time employers. As one of many best payroll solutions for small and midsize companies alike, it affords fashionable HR options similar to payroll, advantages, hiring and administration assets. The seller serves over 200,000 small and huge firms.
Why we selected it:
Gusto is way and away top-of-the-line (and hottest) 1099 payroll software companies for small, midsize and huge companies. You need to use it to pay each contractors and employers, and it syncs with extra accounting and HR instruments than simply about some other payroll software program available on the market. Plus, its tax administration consists of automated 1099 and W-2 type era at no further value — which may’t be mentioned for a lot of of Gusto’s main rivals, together with Paychex.
Our Gusto review can let you know extra about Gusto’s costs and plans.
Pricing
Gusto’s payroll plans begin at $40 per 30 days plus $6 per payee per 30 days. For contractor-only funds, Gusto waives its base value for six months, then expenses $35 per 30 days plus $6 per contractor.
Options
Gusto’s complete payroll software program consists of automated tax submitting, worker onboarding, direct deposit and extra. It additionally offers an easy-to-use interface that means that you can handle your payroll with ease. Its different key payroll features embrace:
- Contractor self-service portal.
- Limitless month-to-month payroll runs.
- Finish-of-year 1099-NEC preparation.
- 4-day direct deposit for contractors.
- Totally automated payroll runs.
Execs
- Worldwide payroll for contractors in 120+ nations (add-on service).
- On-demand pay possibility by way of Gusto Pockets app.
- Thorough time-tracking and accounting software program integrations.
Cons
- Time monitoring accessible by way of third-party integrations solely with least expensive plan.
- No worldwide worker payroll plan.
Rippling: Finest for midsize companies
Our star ranking: 4.3 out of 5
Rippling’s contractor payroll software program offers distinctive help for companies with distant contractors. The platform affords nationwide and international payroll processing with direct deposit, tax administration and paid day off monitoring. It additionally allows contractors to clock out and in to make sure correct recording of hours labored, alongside different options similar to quote-based pricing. Rippling additionally tracks particular person contractor bills by way of customizable stories.
Why we selected it:
Rippling’s modular payroll software program system allows quick, straightforward worker and contractor funds. Since companies can add extra modules to their base plan as they develop, Rippling can also be extraordinarily scalable and customizable. In different phrases, in case your microbusiness begins out working solely with contractors however ultimately expands so as to add an in-house W-2 worker group, Rippling has you coated.
Our Rippling review can let you know extra about Rippling’s costs and plans.
Pricing
Rippling’s payroll software program prices a month-to-month base charge plus an $8 charge per contractor paid per 30 days. Since Rippling’s software program is uniquely customizable, companies ought to contact the corporate for a free demo and customized quote.
Options
- Streamlined contractor onboarding.
- Native foreign money contractor funds.
- Centralized platform for all HR, IT, finance and payroll duties.
- Constructed-in time monitoring.
Execs
- Streamlined, intuitive and user-friendly expertise interface.
- Lots of of integrations by way of the Rippling App Store.
- Handle contractor attributes and map them to different programs.
Cons
- Complete plans could also be too dear for some small companies.
- No standalone payroll for contractors solely.
Paychex: Finest for paying staff + contractors
Our star ranking: 4.0 out of 5
Paychex affords contractor payroll software program with options tailor-made to small, medium and huge organizations. Paychex doesn’t have a standalone contractor-only payroll plan, nevertheless it does have complete HR-and-payroll packages with advantages for in-house staff. In consequence, Paychex is a strong possibility for firms that rent loads of contractors together with benefited staff.
Why we selected it:
Paychex is an especially well-established payroll firm that works with hundreds of companies throughout the globe. Whereas it isn’t probably the most cost-effective payroll resolution if your small business pays contractors solely, its full suite of options affords glorious help for W-2 staff. In consequence, it’s a high resolution for worldwide and home companies that handle each staff and contractors.
Our Paychex review can let you know extra about Paychex’s costs and plans.
Pricing
The seller has three pricing tiers as follows:
- Paychex Flex Necessities: Base charge of $39 per 30 days with an extra $5 per 30 days per worker.
- Paychex Flex Choose: Customized pricing based mostly on particular wants.
- Paychex Flex Professional: Customized pricing based mostly on particular wants.
Options
- Automated payroll runs.
- A number of plans for rising companies.
- 200+ compliance consultants.
- Direct deposit, paper examine, pay as you go debit card and tip disbursement pay choices.
- Complete HR library.
Execs
- A number of add-on options to help in-house staff.
- Optionally available worldwide payroll administration by way of Paychex’s associate FMP World.
- Complete third-party integrations.
- Optionally available worker advantages.
Cons
- Further charge for end-of-year tax type 1099 preparation.
- Further charge for normal ledger reporting.
- Time and attendance accessible as an add-on solely.
Justworks: Finest PEO service
Our star ranking: 4.2 out of 5
Justworks is a professional employer organization, or PEO, that serves as an all-in-one payroll, advantages, HR and compliance resolution for companies of any dimension. With Justworks, companies can handle in-house payroll and pay contractors shortly and precisely.
The software program makes it easy to arrange funds for salaried and hourly staff in addition to off-cycle funds for distributors and contractors. Companies profit from 24/7 customer support help to make sure that payroll is processed appropriately and on time. Justworks additionally offers real-time GPS software program to assist handle worker time monitoring and attendance.
Why we selected it:
The best PEOs take HR and payroll off your plate so you’ll be able to give attention to rising your small business. Whereas we don’t suggest full-service PEOs to small companies that pay contractors solely, co-employment organizations like Justworks can unencumber helpful time and assets by guaranteeing your contractors and group members are paid on time.
Our Justworks review can let you know extra about Justwork’s costs and plans.
Pricing
Justworks affords two pricing plans for payroll companies — Primary and Plus.
- Primary: Begins at $59 per 30 days per worker (value drops to $49 per worker after your fiftieth rent). Contains payroll processing, tax submitting, direct deposit and entry to HR instruments.
- Plus: Begins at $99 per 30 days per worker (value drops to $89 per worker after your fiftieth rent). Contains all the options of the Primary plan plus optionally available medical, imaginative and prescient and dental advantages for workers.
Options
- Cell app entry for contractors and staff.
- Automated direct deposit.
- One-off funds for bonuses, commissions and extra.
- Automated compliance notifications.
- Time and attendance software program (accessible as an add-on).
Execs
- Cell pleasant with an interactive person interface.
- Refined analytics and reporting.
- Simple-to-configure firm guidelines, worker insurance policies and compliance.
- Integration with small-business accounting software like QuickBooks On-line and Xero.
Cons
- Lacks native expense administration options.
- PEO resolution could also be dear for some small companies.
- Further charge for time and attendance software program.
Papaya World: Finest for worldwide contractor funds
Our star ranking: 4.2 out of 5
Papaya World is a cloud-based international folks and payroll resolution that helps multinational companies handle worldwide payroll, cross-border funds and contractors. It integrates your whole international workforce onto a single platform.
Papaya’s automated SaaS platform simplifies the method of managing international workforces and worldwide payroll throughout many nations. It additionally offers options similar to onboarding, time monitoring and compliance administration.
Why we selected it:
With Papaya, firms can shortly course of payroll at a fraction of the time in contrast with different suppliers serving international workforces. Its worldwide contractor fee companies are a few of the least expensive you’ll discover with out compromising high quality: Funds are made in native currencies and in accordance with native labor legal guidelines.
Our Papaya Global overview can let you know extra about Papaya’s costs and plans.
Pricing
Papaya World’s supremely reasonably priced contractor administration service prices simply $2 per 30 days per contractor.
Options
- Worldwide worker and contractor funds in 160+ nations.
- A number of companies together with standalone contractor plan, employer of document service and international advantages plans.
- Complete compliance.
- Highly effective analytics and intelligence reporting.
Execs
- Multi-country payroll knowledge integration.
- AI-based compliance automations.
- On-the-ground compliance consultants.
- Worker relocation and immigration help.
Cons
- No employer-facing payroll app.
- Restricted third-party software program integrations.
OnPay: Most complete payroll service
Our star ranking: 4.7 out of 5
OnPay is a cloud-based payroll software system that makes it straightforward for companies to handle their payroll, taxes, HR and advantages. OnPay’s on-line payroll companies present an intuitive platform that simplifies the method of establishing worker information and operating limitless payrolls.
With OnPay, you’ll be able to entry your pay stubs and look at hours labored and PTO balances on the go along with the OnPay Cell app. Plus, OnPay affords complete HR options that will help you keep compliant with state and federal rules.
Why we selected it:
Greater than practically some other payroll competitor, OnPay affords one of the best worth for value. It prices the identical per 30 days as Gusto however consists of much more options at no cost, together with multi-state payroll. Whereas OnPay is most cost-effective for companies paying W-2 staff and 1099 contractors alike, it’s a strong funding for any enterprise, together with those who solely pay contractors now however plan on hiring staff later.
Our OnPay review can let you know extra about OnPay’s costs and plans.
Pricing
OnPay prices $40 per 30 days plus $6 per 30 days per worker or contractor paid.
Options
- Simple contractor onboarding utilizing solely ITINs.
- Full-service payroll.
- Self-service instruments.
- Finish-of-year 1099 tax type submitting.
Execs
- Simple payroll setup for contractors.
- Intuitive, user-friendly interface.
- Actual-time payroll updates.
- A number of fee choices.
- Complete HR options together with onboarding and time monitoring instruments.
Cons
- Fewer third-party integrations than rivals like Gusto.
- One plan solely.
Deel: Finest worldwide contractor plan
Our star ranking: 4.7 out of 5
Like Papaya Global, Deel is a global payroll service. Together with its employer of document service, international payroll service and immigration help service, Deel has a standalone contractor payroll plan that pays contractors in 100+ nations. Deel additionally affords a free HR admin plan that lets employers retailer knowledge, automate workflows, acquire documentation and handle day off at no further charge.
Why we selected it:
Because of its reasonably priced worldwide contractor plan and free HR software program, Deel is among the most budget-friendly payroll software program choices for companies working internationally. It’s additionally extraordinarily person pleasant, which is a big plus within the complicated, difficult realm of worldwide payroll.
Our Deel review can let you know extra about Deel’s costs and plans.
Pricing
Deel’s contractor plan begins at a flat fee of $49 per 30 days (not per particular person).
Options
- Native compliance consultants.
- Cost in 150 native currencies.
- Automated native tax funds (when relevant).
- Automated invoicing.
- Utterly free HR plan for as much as 200 staff.
Execs
- A number of plans to help completely different enterprise sorts and sizes.
- Payroll in over 100 nations.
- Entry to free hiring assets, together with a worldwide hiring toolkit.
- Emphasis on right worker/contractor classification.
Cons
- Restricted clear pricing on-line.
- No cell app.
Our methodology
To find out which contractor payroll companies are finest for small companies, we checked out two dozen of the most well-liked payroll companies within the U.S. We narrowed down our checklist by prioritizing payroll suppliers with contractor-specific options or plans. We considered demos, signed up at no cost trials and downloaded free variations of every app each time potential. We additionally checked out person evaluations to make sure our evaluations have been as nicely rounded as potential.
To calculate our star scores, we relied on an inside algorithm that assess manufacturers within the following weighted classes:
- Value (25% of total rating).
- Contractor-specific in addition to generic payroll options (35% of total rating).
- Ease of use (15% of total rating).
- Customer support (15% of total rating).
Our skilled’s opinion and hands-on software program testing expertise makes up the ultimate 10% of our calculation. You possibly can study extra about how we calculate star scores and write our analyses by studying our payroll review methodology web page.
How to decide on the suitable contractor payroll service for your small business
Selecting the right contractor payroll service on your wants is essential. Your selection will rely on the type of contractor-specific payroll companies and options you want, in addition to every contractor software program service’s value, ease of use, vendor popularity and scalability.
When you’ve narrowed down our checklist of one of the best payroll software program for contractors to at least one or two choices, join a free trial earlier than signing a contract or committing to a payroll program. If a payroll firm doesn’t supply a free trial, schedule a custom-made demo the place you’ll be able to ask questions on how the software program will profit your organization particularly.
Learn subsequent: A Complete Guide to Payroll Software
Different payroll options
1
Deel
Deel’s full-suite of HR instruments permits firms to handle the whole worker lifecycle—from recruitment and onboarding and past—in 150 nations. All this from a single, straightforward to make use of interface. US and World Payroll means that you can pay any sort of employee in 100+ nations, and all 50 states, in no matter foreign money you select. And with 200+ in-house authorized consultants and entities in 120+ nations, utilizing Deel means you’ll all the time be compliant with native rules.
2
OnPay
Payroll and HR that transfer you in the suitable path. We offer you the whole lot you might want to navigate payroll, HR, and advantages — so you’ll be able to maintain operating your small business easily. And, for a restricted time, get your first three months free!
3
Paylocity
Paylocity’s fashionable HR and payroll software program simply doesn’t simplify administrative duties to save lots of you money and time. Our versatile options may help you appeal to the expertise you want and maintain them engaged – bettering retention, productiveness, and the underside line. See the Paylocity distinction and get to know your folks higher so you’ll be able to construct a thriving, resilient workforce for the longer term.
4
Paycor
Payroll could be a time-consuming, administrative activity for HR groups. Paycor’s resolution is an easy-to-use but highly effective instrument that provides you time again in your day. Shortly and simply pay staff from wherever you might be and by no means fear about tax compliance once more. Key options like normal ledger integration, earned wage entry, AutoRun, worker self-service and detailed reporting simplify the method and assist make sure you pay staff precisely and on time.
5
Multiplier Applied sciences
With Multiplier, pay any variety of international staff simply in a number of currencies. Eradicate the effort of sustaining particular person suppliers per nation. Generate a single bill and pay worldwide groups in minutes. Have a consolidated dashboard to handle international payroll from a single window.