Finding a trustworthy payroll services for contractors can be a challenge. You need to make sure that the provider you choose is reliable and experienced in administering payroll for businesses operating under the contractor model.
Creating and tracking payroll for contractors can be time-consuming and expensive. It’s an area that many businesses outsource to a third party, incurring additional costs but it is an effective solution for those who don’t want to worry about payroll.
To help you find the perfect payroll service for a contractor quickly, fill out the form below and compare 5 contractor payroll service provider quotes to find the best fit for you.
We have also included some of the most popular options, as well as a few lesser-known services that might be perfect for your business in the article. Check out our list and find the perfect payroll service for you!
How to Find the Right Contractor Payroll Service Provider
When choosing a contractor payroll service provider for your organization, there are various factors to consider. After all, this is a critical connection with considerable financial implications.
Here are five characteristics to look for in a contractor payroll service provider to guarantee you’re getting the most bang for your buck.
Competitive Rates and Fees
Before making a selection, it is critical to evaluate rates and fees from several suppliers. The cost of a payroll service varies greatly based on the size of your company and the services you want.
Be sure to get quotes from several companies so you can compare costs and ensure that you get the most value for your money.
Experience and Reputation
Experience and reputation are two key factors when it comes to choosing the right contractor payroll service provider. It’s essential to do some research into each company’s track record before signing any contracts.
Check online reviews and ask around in your business to ensure the company has a positive reputation with its clients. This will help to guarantee that they provide dependable and high-quality services for your company’s requirements.
Another important factor to consider is the technology platform used by potential providers. While traditional paper-based methods of doing payroll still exist, many companies have transitioned to using digital platforms such as software as a service (SaaS).
Make sure that whichever provider you choose offers up-to-date technology solutions that meet current industry standards.
This will help streamline things, making them more efficient and accurate while cutting down on the costs of manual labor that come with traditional ways of doing payroll.
Last, make sure that any possible suppliers have advanced features like automatic payments, direct deposits, tax filing services, payroll reporting tools, employee portals, and so on.
These capabilities can greatly minimize the amount of time spent on time-consuming administrative duties associated with conducting in-house payroll processes.
They can bring simplicity and flexibility when managing a big number of contractors or workers distributed across several locations or divisions within a business.
To summarize, selecting the correct contractor payroll service provider necessitates careful evaluation of both cost and quality considerations in order to optimize returns for businesses while maintaining integrity and customer satisfaction levels.
By following these easy rules, one may quickly discover a trustworthy partner who offers complete solutions at reasonable costs without losing quality or dependability in their services.
Here are our top 7 best payroll services for contractors
1. Roll by ADP
Roll by ADP is the perfect solution for any business looking to manage its payroll. It allows businesses that have part-time or full-time employees, whether they are W-2 or 1099 contractors, to pay them easily and quickly.
Roll by ADP also makes it simple and efficient to add and manage employees, as there are no complicated tutorials needed.
Additionally, Roll by ADP will automatically withhold payroll taxes and file them for you – taking away all the hassle that comes with managing your own payroll!
With Roll by ADP, businesses can enjoy a stress-free way of paying their staff, without worrying about doing it all themselves.
Square Payroll is the ideal option for firms that need to pay contract employees fast.
Employers may use Square Payroll to quickly and simply make payments without having to write checks, as well as effortlessly import their contractors’ hours to maintain correct records.
Furthermore, Square Payroll offers extensive phone assistance for any concerns or issues that may occur. Businesses may save time and effort on payroll and tax paperwork by utilizing Square Payroll.
Contractors will also like Square Payroll’s user-friendly interface, which allows them to monitor their hours precisely and be paid swiftly.
PayReel is an important tool that helps companies pay their workers quickly and correctly. PayReel has a wide range of digital solutions that are especially helpful for businesses that need to hire freelancers or outsource payroll processing.
Customers can rest easy knowing that PayReel is compatible with all rules and regulations and is integrated with a number of external systems and APIs. This is thanks to the experienced PayReel team.
PayReel makes it easier for businesses to pay their employees appropriately and on schedule.
Randstad Sourceright offers a tailored global payroll solution, ideal for independent contractors and companies of all sizes.
Randstad Sourceright’s talent solutions provide a wide range of ways to meet any organization’s specific needs, making it an attractive choice for businesses across the world due to its expansive global reach.
Randstad Sourceright is the perfect choice when looking for an effective and reliable global payroll solution.
Remote working has become increasingly popular and beneficial to businesses, allowing companies to outsource work or hire remote contractors from around the world.
Remotely managing contract workers across 170+ countries can be a monumental task, however, with modern technology, it can now be easily managed.
Remotely employed staff can receive payments in their own currency, while the company is provided with compliant contracts tailored for the specific country.
Remote working could no longer be any simpler or more accessible for employees of companies and contractors who want to work from home!
How Payroll Services Can Help Your Contracting Business Grow
Let’s take a look at how you can benefit from using a payroll service.
- Time Savings: Managing payroll takes up valuable time, especially when you have to make sure all the records are accurate. With a payroll service, all of the calculations are done for you so that you don’t have to worry about making mistakes or spending hours doing manual calculations. This means that you can spend more time focusing on other aspects of running your business instead of getting bogged down in paperwork.
- Cost Savings: Using a contractor payroll service can also save you money in the long run. By outsourcing your payroll responsibilities, you won’t have to invest in expensive software or hire additional staff members to take care of it for you. Plus, since the calculations are done for you by the payroll service, there’s less chance for human error which could lead to costly legal problems down the road. It’s a win-win situation!
- Growth Opportunities: Using a contractor payroll provider might help your company develop in new directions. When you free up more time from managing payroll responsibilities, you can devote more time to reaching out to new clients and expanding your customer base. You may also utilize this extra time to improve current services or introduce new ones! When it comes to increasing what your contracting firm can offer its consumers, the choices are limitless.
Outsourcing these responsibilities to an expert contractor payroll service provider can not only save you time and money but will also open up new avenues for growth prospects.
Investing in this type of service will ultimately pay you in the long term by allowing your contracting firm to reach new heights!
How much will it cost to use a contractor payroll service, and is it worth the investment?
Estimating the cost of a contractor’s payroll service varies and depends on the contractor’s needs.
Generally, you can expect to pay a base fee of between $29 and $45, based on the size and complexity of your organization, plus an additional fee per contractor ranging from $4 and $6.
While the initial investment may seem steep, in the long run, you can often save yourself time and money by using an experienced payroll service to ensure compliance with applicable laws and regulations.
Ultimately, whether or not investing in a payroll service is worth it for your business will depend on your specific needs and budget.
Do I need a payroll service for 1099?
Yes, you do need a payroll service for 1099 employees. This is because 1099 employees are considered independent contractors, which means that their pay comes through the regular payroll schedule of the company that employs them.
Can I pay a 1099 employee cash?
Paying independent contractors with cash instead of issuing a check is not strictly illegal, but it is not sound financial practice. It reduces your ability to track expenses and pay taxes correctly, and it also increases the likelihood of being audited by the IRS if you are found to violate IRS regulations.
By taking the extra step of providing payment through a check or an electronic transaction, you will give yourself greater transparency over what expenses have been taken on and you can rest more easily knowing that all taxes have been paid properly.
Furthermore, paying in cash eliminates any possibility for proof of purchase which could lead to future legal issues should a dispute arise and requirements such as proof appear unavoidable.
Ultimately, while cash may sometimes feel like the most convenient and attractive option for paying independent contractors, it is likely best to move away from this practice wherever possible.
Do you need QuickBooks payroll to pay contractors?
You can but it is not required.