The Very Best Payroll Software for 1099 Employees in 2024

Homebase Payroll - Simplify Payroll for Small Businesses & Hourly Teams

Homebase Payroll provides a comprehensive payroll solution specifically tailored for small businesses, particularly those managing hourly teams. Its robust feature set aims to streamline payroll processes, enhance compliance, and minimize errors. Homebase offers tools like automated timesheet conversion, effortless payroll calculations, and tax filings to help business owners manage payroll with ease. With support for various pay frequencies and unlimited payroll runs, the system is versatile enough to handle different business needs. Employees can also benefit from self-onboarding capabilities and early wage access, enhancing their experience and satisfaction.

A standout feature of Homebase Payroll is its deep integration with other essential management tools. The platform includes functionalities for time clocks, employee scheduling, and a built-in communication system that ensures the entire team stays in sync. Additionally, Homebase offers financial tools to help manage labor costs and employee financial health, along with onboarding and compliance features that keep tax and hiring documentation up-to-date. The mobile app extends these capabilities, allowing managers and employees to perform most functions on the go.

Homebase Payroll's pricing is transparent and flexible, with a base fee of $39 per month and an additional $6 per active employee. This includes unlimited payroll runs, automated payroll tax payments, direct deposit options, and access to employee self-service features. Businesses can choose from multiple plans, ranging from a free Basic plan to the comprehensive All-in-One plan, each capable of adding payroll as an optional service. Homebase provides free setup and customer support to ensure a smooth onboarding process, making it a reliable and efficient tool for small businesses seeking to simplify their payroll and HR operations.

With its focus on ease-of-use, extensive feature set, and customer-centric pricing, Homebase Payroll emerges as a top choice for small businesses looking to stay compliant and efficiently manage their payroll needs.

Benefits

- Time and Attendance: Employees can clock in/out on any device; automated timesheets convert hours worked into payroll-ready data.
- Payroll Processing: Simplified payroll with automatic calculations for wages, taxes, deductions, direct deposits, and tax filings.
- Onboarding and Compliance: Self-onboarding for new hires, e-sign and upload forms, compliance management with meticulous record-keeping.
- Employee Management: Scheduling, communication, time-off management, shift trading, and real-time alerts within the app.
- Financial and Labor Tools: Early wage access, labor cost controls, financial health forecasting, and planning.
- Hiring and Recruitment: Job posting to top boards, applicant tracking, and seamless candidate communication.
- Mobile App: Full functionality on the go, including clocking in/out, viewing schedules, swapping shifts, and payroll history.
- Integrations: Seamless syncing with QuickBooks Online and other tools like time tracking and POS software.
- Support and Setup: Free setup with no implementation fees, customer support via phone, email, or chat, and live HR experts for compliance and tax questions.

Simplified Pricing Information

- Basic Plan: Free - Includes basic scheduling, time tracking, and point-of-sale integration. Payroll is available as an add-on.
- Essentials Plan: $20/month - Includes everything in the Basic plan plus advanced scheduling, advanced time tracking, and team communication. Payroll is available as an add-on.
- Plus Plan: $48/month - Includes everything in the Essentials plan plus hiring, PTO and time-off controls, departments and permissions, and more. Payroll is available as an add-on.
- All-in-One Plan: $80/month - Includes everything in the Plus plan plus employee onboarding, labor cost management, HR and compliance, and more. Payroll is available as an add-on.

Square POS - Point of Sale System

Square POS is a robust platform designed to streamline operations for businesses, covering everything from payments and inventory to customer relationship management and analytics. Trusted by businesses worldwide, Square POS offers comprehensive features to facilitate smooth and efficient business transactions.

Key features of Square POS include customizable checkout processes to speed up lines, offline payment capabilities, and the ability to provide digital or printed receipts. Users can also create custom tip amounts and automatic discounts for specific items or categories. Inventory management is simplified through daily low-stock alerts, downloadable reports, and integration with inventory management software partners.

Square POS excels in customer management by storing customer details and interactions, enabling personalized engagement using free CRM tools. It supports feedback collection through digital receipts and order notes to address customer inquiries efficiently. The platform also integrates seamlessly with online sales channels, offering features like online ordering, eGift cards, and connections to third-party apps such as QuickBooks and WooCommerce.

Additionally, Square POS offers advanced functionalities such as team management with custom permission sets, a built-in loyalty program, and email marketing tools. Businesses can leverage features like Afterpay for installment payments and create subscription plans. Square Invoices and Virtual Terminal facilitate remote billing, while Square Online supports online sales and bookings.

Security and compliance are paramount. Square POS includes dispute management, fraud protection, and encrypted transactions that comply with Level 1 PCI Data Security Standards. Pricing for Square POS is straightforward, with no setup or monthly fees for the basic software—users simply pay per transaction. For those processing large volumes, custom rates are available.

Square also provides an array of supporting tools, including integrated hardware and APIs for seamless integration with other apps. The platform ensures businesses, regardless of size, can manage their operations efficiently and securely.

Benefits:

• Streamlines operations for businesses.
• Elevates transaction management and customer engagement.
• Saves time on inventory and customer relationship management.

Simplified pricing info

Free Plan with no monthly fees; processing fees at 2.6% + 10¢ per in-person transaction, 3.5% + 15¢ for manually entered transactions, 2.9% + 30¢ for online purchases, and 1% for ACH transfers with a minimum fee of $1 per transaction. Plus Plan: $29/month billed annually includes additional features like website themes and customer accounts. Premium Plan: $79/month billed annually includes lower processing rates and premium customer support. Custom rates for businesses with annual sales exceeding $250,000.

Eddy HR - Revolutionize Your HR Management

Eddy HR is a comprehensive human resources management tool meticulously designed to streamline and automate various HR tasks. Perfect for small to medium-sized businesses, it covers an extensive range of features from hiring and onboarding to payroll and performance management, ensuring that all HR aspects are efficiently handled.

This powerful tool comes equipped with an Applicant Tracking System (ATS) for seamless candidate communication and applicant progress tracking. The digital onboarding process enables new hires to complete necessary paperwork before their first day, facilitating a smooth transition. Eddy HR also provides robust people management tools, an organized employee directory, and cloud-based document storage for secure and easy access to HR documents. Training tracking features help monitor employee certifications, while the PTO management lets you customize leave plans. Additionally, efficient payroll processing and comprehensive time tracking ensure accurate and timely compensation.

Benefits of Eddy HR

• Applicant Tracking System (ATS): Automates the hiring process, managing candidate communications and tracking applicant progress.
• Onboarding: Digital onboarding process for new hires, reducing paperwork and facilitating a smooth integration.
• People Management: Tools for managing employee relationships, detailed employee profiles, and directories.
• Document Storage: Cloud-based storage for secure and organized HR documentation.
• Training Tracking: Customizable tracking of employee training and certification renewals.
• Paid Time Off (PTO): Personalizable PTO plans according to company policies.
• Payroll: Comprehensive payroll management for accurate and timely compensation.
• Time Tracking: Tools for tracking employee time, calculating overtime, and evaluating productivity.
• Integrations: Workflow enhancements with third-party tools like HelloSign and Indeed.
• Support and Training: Extensive options ranging from live chat to webinars and video tutorials.

Simplified Pricing

Base Plan: Starting at $99 per month.

Custom Quotes: Tailored based on company size and specific HR needs.

Deployment: Cloud-based, SaaS, and Web-based options available.

For detailed pricing information or a personalized quote, users can request a demo or reach out to Eddy HR’s sales team.

Deel - The Leading Solution for Global 1099 Payroll Management

Deel provides comprehensive global HR and payroll services tailored to businesses managing remote or international teams. Trusted by companies across the world, Deel's suite of features streamlines hiring, onboarding, compliance, and payroll processes.

Deel equips businesses with pre-built, compliant employment contract templates, automated onboarding, and a Compliance Hub that ensures adherence to local employment laws and regulations. Its advanced payroll management includes automated payroll processing, real-time payroll data, and integrations with accounting systems like QuickBooks and Xero. Additionally, Deel offers tools for employee engagement, time off management, and remote working equipment provisioning through partnerships with suppliers like Hofy. The platform also supports API capabilities for custom integrations and white-label solutions, making it highly adaptable to a variety of business needs.

Benefits:

• Streamlines payroll and HR processes.
• Elevates quality and compliance of global employee management.
• Saves time on contract management and onboarding.

Simplified Pricing Info:

Deel Contractor: $49 per active contract per month.
Deel EOR (Employer of Record): Starting at $599 per month.
Deel Payroll: Starting at $29 per employee per month.
Deel US Payroll: Starting at $19 per employee per month.
Deel US PEO (Professional Employer Organization): Starting at $79 per employee per month.
Deel HR: Free global-first HR platform.
Deel Engage: Starting at $20 per employee per month.

Deel makes global workforce management simple, affordable, and compliant.

Paycor - Revolutionizing HR and Payroll Efficiency

Paycor is a renowned provider of HR and Payroll solutions, effectively streamlining various HR functions from recruiting to compliance. With over 30 years in the industry and serving more than 40,000 businesses across America, Paycor's integrated platform allows efficient management of HR and Payroll operations. Key features include swift payroll processing, talent management tools, and comprehensive compliance capabilities.

Paycor’s uniqueness lies in its wide range of industry solutions tailored for sectors like healthcare, manufacturing, nonprofits, and others. The platform integrates with over 300 partners, enhancing functionality, while its customizable solutions cater to diverse business sizes and industries. Additionally, Paycor ensures regulatory compliance and robust data security.

Paycor supports its users with services like live demos, a resource center full of guides and whitepapers, and a dedicated customer success manager for ongoing assistance. The company offers HR + Payroll plans customized according to the company size and specific needs, complemented by a free trial for users to explore the system. Paycor's seamless experience in managing HR and payroll processes is bolstered by testimonials from satisfied customers in various fields.

Benefits

• Streamlines HR and Payroll processes with integrated software.
• Enhances recruiting and talent management with automation tools.
• Enables quick and efficient payroll processing.
• Customizable solutions to meet specific business needs.
• Ensures compliance and security in data handling.

Simplified Pricing Information

Paycor offers tailored pricing plans based on company size and specific needs, ensuring flexibility and affordability for businesses of all sizes.

• Custom pricing for HR + Payroll plans.
• Free trial available to explore platform features.
• Full integration support and dedicated customer success manager.
• For detailed pricing, call 855-752-8564 to get an accurate quote based on specific requirements.

Benefits of Payroll Software for 1099 Employees

• Time-Saving Automation: Streamlines payroll processes and reduces manual data entry. Automates tax calculations and filings, ensuring compliance with deadlines.
• Enhanced Accuracy: Minimizes human errors in payroll calculations. Automatically updates with the latest tax regulations and rates.
• Effortless Compliance: Ensures adherence to federal, state, and local laws. Generates and files 1099 forms electronically to meet IRS requirements.
• Cost-Effective: Reduces the need for additional payroll staff. Lowers the risk of costly penalties due to payroll errors or non-compliance.
• Flexibility for Remote Work: Cloud-based systems allow you to manage payroll from anywhere. Provides access to historical payroll data and reports on-demand.
• Improved Data Security: Utilizes advanced encryption and secure servers to protect sensitive information. Offers user permissions and roles to control access to payroll data.
• Employee Self-Service: Allows 1099 contractors to access their payment history, tax documents, and personal information. Improves morale by providing transparent and timely payment information.
• Integration with Other Systems: Seamlessly integrates with accounting, time tracking, and other business software. Facilitates the flow of data between different business processes.
• Customizable Reporting: Generates detailed reports for better financial analysis and decision-making. Customizes reports to suit specific business needs and compliance requirements.
• Reliable Support and Training: Offers customer support to resolve issues promptly. Provides training resources to help you and your team maximize the software’s potential.

Frequently Asked Questions (FAQs)

Q1: What is 1099 payroll software?

A1: 1099 payroll software is a specialized platform designed to handle payments and tax documentation for independent contractors, freelancers, and other self-employed individuals. Unlike traditional W-2 employees, 1099 employees are responsible for their own taxes, and this software helps streamline the process of managing their payments and generating necessary forms.

Q2: Why do I need payroll software for 1099 employees?

A2: Payroll software for 1099 employees simplifies the administrative burden associated with managing payments to independent contractors. It ensures accurate, timely payments, generates required tax documentation (like the 1099-MISC or 1099-NEC forms), and helps maintain compliance with IRS regulations. This reduces the risk of errors and penalties, saving you time and money.

Q3: What features should I look for in 1099 payroll software?

A3: When selecting payroll software for 1099 employees, important features to consider include: - Automated payment processing. - Generation and e-filing of 1099 forms. - Integration with accounting systems. - User-friendly interface. - Real-time tracking of contractor hours and payments. - Tax compliance and reporting tools. - Customer support and resources for troubleshooting.

Q4: How does 1099 payroll software help with tax compliance?

A4: 1099 payroll software helps with tax compliance by accurately tracking earnings and automatically generating required tax forms like the 1099-MISC or 1099-NEC. It often includes tools to e-file these forms directly with the IRS and provide copies to contractors. This ensures that all payments are properly reported, reducing the likelihood of errors that could trigger tax penalties.

Q5: Can I use the same payroll software for both W-2 employees and 1099 contractors?

A5: Many modern payroll software solutions are capable of managing both W-2 employees and 1099 contractors within a single platform. However, it's important to ensure that the software you choose offers robust features tailored to the specific needs of both employee types. This dual functionality can streamline your payroll processes and provide a comprehensive view of your workforce expenses.

Q6: How does the software handle payments to 1099 contractors?

A6: The software typically allows you to set up payment schedules and methods (such as direct deposit or checks) for each contractor. It automates the calculation of earnings based on time spent on projects, hourly rates, or fixed fees, ensuring timely and accurate payments. Some platforms even offer mobile apps to make it easy for contractors to log their hours or submit invoices.

Q7: Is it safer to use payroll software than handling 1099 payments manually?

A7: Using payroll software is generally safer and more reliable than handling 1099 payments manually. The software reduces the risk of human error, ensures compliance with tax regulations, and automates many repetitive tasks. Additionally, most payroll software includes security features to protect sensitive financial data, offering peace of mind and enhanced protection against data breaches.

Q8: How often should I generate and file 1099 forms using payroll software?

A8: Generally, 1099 forms must be generated and filed annually for any contractor to whom you've paid $600 or more in a calendar year. The deadline for furnishing the 1099 forms to contractors is usually January 31, followed by the IRS filing deadline at the end of February (or March if filing electronically). The payroll software will typically provide reminders and facilitate timely generation and e-filing of these forms.

Q9: How much does payroll software for 1099 employees typically cost?

A9: The cost of payroll software for 1099 employees can vary widely depending on the features and scale of the platform. Many providers offer tiered pricing models based on the number of contractors you're managing and the complexity of your payroll needs. Basic plans can start as low as $20 per month, while more comprehensive packages might range from $50 to $100+ per month. Some vendors also offer pay-as-you-go options that only charge you for the contractors you are actively paying.

Q10: Can the software help with regulatory changes and updates?

A10: Yes, reputable payroll software providers continuously update their platforms to comply with the latest regulatory changes and tax codes. They often provide resources, notifications, and updates to ensure your payroll process remains compliant with new laws and requirements. This proactive approach helps you stay ahead of regulatory changes without additional effort on your part.