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1099 Payroll Software
  • Publish: March 31, 2021
  • Author: Matt
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What Is the Best 1099 Payroll Software for Your Business?

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Dealing with contractors comes with complex paperwork—1099-MISC forms. For those who are new to cooperating with contractors, the additional steps they have to take are nothing but confusing.

At the end of the year, once you get the 1099 forms, you could spend hours, if not days, before you manage to find the payments that need to be included in the form. This process is beyond time-consuming, and we all know that there are more important things to take care of at that time.

If you want to save time and money, introducing 1099 payroll software is going to be your best bet. Having a 1099 payroll software solution will make all the exhausting payment processes significantly easier to deal with, and will relieve your HR team of any further stress.

The most advanced 1099 payroll software solutions on the market are the following:

  1. BambooHR
  2. QuickBooks
  3. Paycor
  4. Patriot
  5. Square
  6. ADP
  7. Zenefits
  8. Gusto
  9. Wave

Top 9 1099 Payroll Software Solutions

Having spent endless hours on research, we’ve found the best 1099 payroll software solutions that will exceed your expectations. No matter which one of the following solutions you choose, your business will go through significant improvements once the software is implemented.

BambooHR

Source: BambooHR

BambooHR is the name of the game when it comes to advanced 1099 payroll software. This software solution is designed for small and medium-sized businesses looking to improve their payroll processes. Being that BambooHR offers other HR tools, you can implement a couple of them to avoid data double-entry—this way, the platform works like a charm.

ProsCons
Provides a super simple interface Allows for employee self-serviceCan’t be used by large enterprises Doesn’t allow for customization

QuickBooks

Source: Quickbooks

If you’re looking for 1099 payroll software that is super easy to use, QuickBooks will be the best choice. Since this solution is intended for small businesses, its purpose is to simplify all payroll processes. QuickBooks’ 1099 payroll software solution comes at an affordable price, making it the best option for those who don’t want to invest too much.

ProsCons
Provides excellent accounting reports Is flexible with third-party appsLimits the number of users Doesn’t provide enough of the most crucial reports

Paycor

Source: Paycor

Paycor is going to become your best friend if you’re on the lookout for an all-in-one software solution. Paycor is going to boost your HR team’s efficiency and reduce any compliance concerns. You can use the software in multiple ways—to manage employee information, insert employee hours, review all monetary requirements, and so much more.

ProsCons
Provides efficient ease of use Has an announcement feature for only $1 per person per yearDoesn’t provide implementation guidance Doesn’t allow you to turn some features off

Patriot

Source: Patriot

Patriot is one of the most user-friendly 1099 payroll software solutions on the market. This software also provides a 30-day free trial, which you can use to get familiar with all of Patriot’s functionalities. If you don’t want to invest a lot of money in payroll software, Patriot will be the best option for you, as it comes at an affordable price.

ProsCons
Allows for seamless integration Is known for excellent supportDoesn’t provide a sick pay feature Isn’t suitable for large businesses

Square

Source: Square

Square is going to be the perfect fit for your business if you’re on the lookout for software that handles state and federal payroll taxes, such as filings, payments, and withholdings. This software is intended for businesses of all sizes and allows you to pay hourly and salaried employees super easily.

ProsCons
Allows for multi-state operation Provides excellent tax complianceResponse from customer support isn’t quick Lacks key features for small businesses

ADP

Source: ADP

Having been present on the market for many years, ADP tweaked its 1099 payroll software to perfection. Being cloud-hosted, ADP is accessible through the web, which makes the whole implementation process much easier. This software is an excellent option if you want to have features such as compliance, time tracking, payroll reports, and many others.

ProsCons
Has lots of features to choose from Is built to grow together with youHas complex payroll fees Provides insufficient customer support

Zenefits

Source: Zenefits

Zenefits’ 1099 payroll software solution was made to be super easy to use. If you’re looking for an all-in-one software solution that allows for the management of HR, payroll, benefits, and time and attendance, Zenefits will work like a charm for your business. With an excellent interface, the solution is as user-friendly as it gets.

ProsCons
Allows for easy access Keeps track of compensationDoesn’t update payroll automatically Doesn’t have accessible support

Gusto

Source: Gusto

If you want 1099 payroll software that helps you pay, insure, and onboard your team, Gusto will become your best friend. Among other things, Gusto will assist you in tracking and managing orders, inventory, and documents using its unique tools. The software’s payroll is perfect for smaller businesses.

ProsCons
Allows for effective job management Allows for payroll cancelationIs a U.S.-only platform Can get expensive

Wave

Source: Wave

Wave is a cloud-based payroll software solution that was made for businesses that have less than ten employees. Being super easy to navigate, the software provides ultimate efficacy and efficiency. Wave is excellent for all businesses that want unlimited invoicing, as well as expense management services.

ProsCons
Super easy to use AffordableAvailable in the U.S. and Canada only Doesn’t support many integrations

Why Using 1099 Payroll Software Is Important

Using 1099 payroll software comes with major perks, the biggest one being the time-saving aspect. Remember that time is money, and one of the solutions that can help you save it is payroll software.

Your HR team has to complete hundreds of manual, non-critical tasks instead of investing their time in worthwhile business planning. We cannot stress enough how important it is to relieve your team of unnecessary stress. One way to do that is to introduce as many HR software tools as you can.

Automating various tasks has become easier than ever before, which allows businesses to dedicate more time to expansion strategies. Your HR’s job shouldn’t be to spend hours trying to find some payments that should be inserted in 1099 forms. They are supposed to focus on business development, office environment, and other highly valuable things.

If you want your HR department to be rested and as productive as humanly possible, you need to help them out by introducing modern solutions to your company. This is going to boost overall employee satisfaction, which also improves employee retention rates.

You should take better care of your employees—they are your company’s most valuable asset.

What Are the Benefits of Using 1099 Payroll Software?

1099 payroll software can help your company in many different ways. No matter which business you decide to buy it from, it will improve your overall performance.

Some of the most noteworthy advantages of 1099 payroll software are:

  • Cost-effectiveness—As soon as you introduce 1099 payroll software to your business, you’ll realize how much money you can save with it. Software solutions are capable of automating all tasks, and 1099 payroll one is no exception. This means that you won’t have to waste your money on professional services because there’s a much easier and less expensive way to get the job done
  • Time-saving—One of the biggest advantages of 1099 payroll software is the amount of time it can save you. Handling things manually won’t be your best bet when it comes to 1099-MISC forms, and that’s why you should introduce a dedicated payroll software to automate the task for you
  • Security—Being that 1099 payroll software operates under your business’ roof, you won’t have to worry about any potential risks. When you send your sensitive information to professional service providers, you can never be certain whether everything is handled properly. With an in-house solution, you won’t have to worry about this again
  • Compliance—The majority of modern 1099 payroll software solutions offer full compliance with the latest regulatory standards. Many businesses get fined for incorrect tax filings, but 1099 payroll software is here to stop that once and for all, as it eliminates errors
  • Employee satisfaction—Among many other things, 1099 payroll software increases employee satisfaction. Knowing that they don’t have to spend endless hours trying to find some documents, your HR team will be much happier and more productive
  • Employee retention—Once your employees are satisfied, there’s no turning back—your employee retention rates will improve drastically. If you want to keep your HR team happy, introduce 1099 payroll software to your business and help them focus on more important aspects of the business

What Are the Setbacks of 1099 Payroll Software?

While 1099 payroll software does come with plenty of advantages for businesses, you should also know that there are a few setbacks worthy of your attention.

The following disadvantages of 1099 payroll software are the most prominent ones:

  • Information access—Giving access to information to everyone can be dangerous—restrict it to a few employees
  • Cybersecurity—Cyber-attacks are the most common threat to your assets. Make sure that your system is fully protected to avoid them
  • Information control—You need to keep your information under rigorous control. Run some payroll control reports to identify potential weaknesses
  • Data security—Data that isn’t secure is subject to theft, manipulation, cyber-attacks, etc.
  • Information quality—Information lacking quality doesn’t comply with the latest regulatory standards

All of the listed concerns should be considered since they’re anything but silly. 1099 payroll software has many benefits, but is it worth the risk? You have to make that decision with your team.

Keep in mind that, just because the risks are present, doesn’t mean you can’t avoid the issues. Most 1099 payroll software users have nothing but glowing recommendations, though you shouldn’t ignore the downsides because of some good reviews.

How Does GDPR Affect 1099 Payroll Software?

Payroll affects all sorts of sensitive information. Being that GDPR compliance is one of the most talked-about topics, it’s crucial for you to find 1099 payroll software that adheres to the latest security standards.

GDPR requires you to do the following:

  1. Control who has access to payroll information
  2. Review privacy notes
  3. Ensure that your privacy notes are up-to-date and comply with the latest regulations
  4. Keep only the data that’s necessary for your business
  5. Document all data that you hold
  6. Document where all the data you hold came from
  7. Report who you share the data you hold with

If you meet all of the listed requirements, and your 1099 payroll software helps you fulfill them, you are good to go.

Choosing the Best 1099 Payroll Software—A Buying Guide

Payroll software comes with many different features that aim to help your business grow and execute tasks more easily and effectively. All of the best solutions will allow you to handle 1099-MISC forms, but what are the features that make payroll software stand out?

Let’s see which features your payroll software needs to have:

Payroll featuresOther features
Reporting Year-end reporting Tax filing and payments Direct deposit Automated payroll runs Multiple schedules Multiple pay-ratesPTO policies HR documentation Time tracking Paid time off Workers’ compensation New hire onboarding Surveys

You can easily determine whether the 1099 payroll software you picked out is as remarkable as it claims to be. All you need to do is look for the listed features, and you’ll have an answer before you know it.

Choosing an adequate software solution can be tricky—there are plenty of them on the market, and you can never know for sure whether you’re eyeing the best one. The competition has never been denser, so try to double-think your decision.

With all the payroll software solutions available on the market, it’s hard to find unique ones. Most of them try to make themselves stick out by promoting the fact that they have hundreds of features. At first, it might seem compelling—the features sound like they will help with any aspect of your life. This is far from true, though.

The wisest decision-making process should take place at your office, where you can discuss your options with your team. Ask them what they believe would be the most useful features to have in your company. After all, nobody understands your business needs better than your team.

How Much Does 1099 Payroll Software Cost?

The price of 1099 payroll software can vary. The price range gets quite extensive depending on which features you want to include, how many employees your business has, or what you want the software to do for you.

The most common thing for vendors to do is to base their pricing plans on the number of employees. The bigger the company, the higher the price you have to pay.

Most vendors will be open for negotiation, so keep that in mind before you sign up for a service. Try to reduce the price, and don’t worry if it doesn’t work out—other vendors will be more than happy to have you as a client even at a lower price.

Here’s what an average pricing plan for 1099 payroll software looks like:

Number of employeesAverage pricing
10$2,100/year
100$15,000/year
1,000$50,000/year

All of the listed prices are nothing but examples, so don’t rely on this information. Depending on the vendor you choose, the prices can shift super quickly and easily.

The features that you get for the price is also something you should take into consideration. Some vendors will offer more features for the same price as those who offer fewer ones.

It is well known in business that not everyone has your best interest at heart, so don’t allow anyone to rip you off.

How to Be Sure You’re Making the Right Choice

One of the biggest deal-breakers in your decision-making process should be your chosen vendor’s product demo. If the vendor doesn’t offer one, it would be for the best to stay away from that 1099 payroll software.

You need to make sure to ask the vendor some thoughtful questions during the product demo. That way, you will get to learn everything you want to know about the product.

Some of the most important questions you should ask your vendor are:

  1. How many employees does your biggest and smallest client have?
  2. Are you accustomed to working with clients of my size?
  3. How long is the implementation process going to last?
  4. Is your 1099 payroll software GDPR compliant?
  5. How can my finance team get a hold of important files?
  6. How does the implementation process work?
  7. Will anyone from your team help me during the implementation?
  8. How do you handle tax filing?
  9. Will your software integrate with my existing technologies?
  10. Can you tell me how you handle payroll taxes?

If the vendor is capable of answering all of the listed questions to your satisfaction, you don’t need to worry about making any mistakes. Answering these questions will show you how familiar the vendor is with the product they’re trying to sell.

Choosing from the top nine 1099 payroll software solutions is going to be your best bet. Those solutions are the best ones on the market, and they have proven their excellence over time—no matter which one of those you choose, you won’t be disappointed.

If you’re on the lookout for the best, cutting-edge HR solutions, check out our HR software categories page to learn more!

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