Easy-to-Implement Contractor Payroll Solutions

Understanding how to pay your independent contractors is an important part of finding a contractor payroll solution. Paying contractors, or 1099 workers, is often easier than paying company employees. You may also save money when you work with them. Unlike when you pay employees, you will not pay or withhold taxes for independent contractors.

As you build your small business, consider the number of independent contractors and employees that you wish to hire. Finding a payroll software that can accommodate both classifications is essential. Tools from Advanced Micro Solutions will help businesses pay multiple types of workers. Whether your small business prints checks individually or chooses to print by date range, AMS gives businesses what they need to manage payroll.

 

 

How to Pay Independent Contractors

Employers can pay independent contractors in five simple steps. The steps to find contractor payroll solutions include:

  1. Deciding how to pay contractors. Paying a 1099 worker is not hard, but it differs from when you pay an employee. Before you onboard contractors, decide how much you will pay them and select the system that you will use to pay them. You will generally choose between paying them hourly or per assignment.
  2. Collecting the paperwork. Independent contractors must complete Form W-9. They will record their name, Social Security Number, and other personal information. Make sure to collect the forms before your workers start a job.
  3. Inputting contractors into your system. Record all of your contractors’ information. Keeping the information updated will help you meet contractor payroll solutions and avoid any mistakes on payday.
  4. Processing 1099 payments. Some business owners prefer paying workers by printing paychecks. Others will speed up the process by arranging direct deposits. Discuss what your contractors prefer before embarking on a project.
  5. Delivering Form 1099-NEC. Make sure you prepare for sending 1099-NEC forms to all relevant independent contractors. You will send forms to the contract workers that you paid more than $600 within the past year.

 

Paying Contract Workers with AMS

If you are struggling to pay your employees and contract workers, AMS can offer much-needed support. Our accounting and payroll software can alleviate small business owners’ burdens when running multiple payment types. The software operates as an add-on module for the W-2 and 1099 Forms Filer. Employers can enter payroll and non-employee compensation year-round. If you choose to run payroll “live” or after-the-fact, AMS’ system will support your business model.

It is also crucial to understand all of the legal responsibilities that surround paying certain non-salaried workers. Misclassifying any employees or contractors can result in the Internal Revenue Service issuing fines and additional taxes. Employers can utilize AMS programs to understand what they owe workers and the IRS. The program automatically calculates federal, state, and local payroll taxes. It also regularly updates state and federal tax tables to ensure you have the most up-to-date information.

 

 

As you review contractor payroll solutions, take some time to explore AMS’ many offerings. You can reach our customer support team by calling (405) 340-0697. Small businesses can also get familiar with our features by trying our 1099-etc Demo program.

Software Solutions from AMS

Our W2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.