Independent contractor software is an increasingly important business tool. Whether you work as a contractor yourself or with self-employed people, you’ll need a way to track work. That’s where a W-2/1099 Forms Filer can help. This type of software helps users record personal data and payment information throughout the year. The result? An accurate tax and wage record at the end of the year.
If you’re in the market for a 1099 software, Advanced Micro Solutions can help. We design accounting tools with small businesses – and self-employed people – in mind. Our W-2/1099 Forms Filer is a great place to start.
How Do Independent Contractors Keep Track of Income?
Sometimes, independent contractor software is a tool that self-employed people use to keep track of their income. In this case, the software itself functions as a spreadsheet. The independent contractor tracks both income and expenses, then records payment when received. In some situations, an independent contractor may use a W-2/1099 Forms Filer and payroll tool to track subcontractors and certain forms of payment.
How Do Companies Keep Track of Independent Contractors?
In a single year, a company may work with dozens – if not hundreds – of independent contractors. Contractors can be brought in to bridge the gap between longer-term hires. They may be contracted to fulfill a short-term goal or project. In some cases, a company may only need an independent contractor to do building work, like replacing windows or servicing the HVAC system. Regardless of a company’s size and industry, they will undoubtedly work with an independent contractor during a tax year. This means specialized software is extremely important.
Contractor software helps businesses to track and maintain records for each person they’ve paid. Throughout the year, a business will enter the contractor’s W-9 information, then record payments via a payroll tool, like AMS Payroll. They then use this information at the end of the year to determine whether that worker requires a 1099 form, as well as where to send a relevant copy. Without an organizational tool, a company risks losing track of certain workers. This can lead to steep penalties from the IRS.
A W-2/1099 Forms Filer can also be helpful for independent contractors themselves. These people often operate alongside other self-employed workers. In some cases, those workers may be subcontractors. To that end, general contractors may work with dozens of subcontractors on a single project. For self-employed workers with this type of labor structure, an independent contractor software like AMS can help.
Get Started with AMS Today
Independent contractor software can mean different things to different people. If you want to ensure that our W-2/1099 Forms Filer is exactly what you need, check out our free demo software. This is a great opportunity to see if we have what you need. If AMS isn’t a good fit for you at this time, you won’t have lost anything in the research process.
That said, if you have any questions, we encourage you to call our Sales and Information team a call at 800-536-1099. We want you to feel confident in your purchase.