Employers who use independent contractor payroll software can save their company time and money. Knowing the most effective ways to use the software will help you avoid making annoying – and often costly – mistakes. Whether your business employs part- or full-time workers, or relies primarily on contracted work, using a comprehensive but affordable software can make a huge difference.
Many small businesses don’t have enough workers to justify investing in a payroll solution. This is where Advanced Micro Solutions can help. Our payroll software is specifically designed to meet the needs of small businesses – with all the bells and whistles you care to add.
If you employ a mix of independent contractors and employees, software that accommodates multiple worker classifications will keep you organized. AMS provides a base W-2 and 1099 program with payroll software as an offered add-on module.
Paying Workers with Independent Contractor Payroll Software
Once you properly classify your independent contractors, you will need to take certain steps to pay them correctly. Following these steps allow small businesses to retain their workers.
- Establish the payment form. If you hired a new contractor, make sure to establish their rate and payment schedule. Once both parties agree on the terms, complete an independent contractor agreement.
- Collect Form W-9. Once your contractors complete them, collect all W-9 forms. You will need information like their names and Social Security Numbers. Your company will use that information when you report their yearly earnings at the end of the year.
- Put contractors into your payroll program. After you collect all contractor information, enter it into your independent contractor payroll software. Saving the information and backing it up will only benefit you in the long run.
- Process the relevant 1099 payments. You can pay your independent contractors in a few ways. Payment options typically include checks and direct deposits, both of which are supported by AMS Payroll. If you use direct deposits, make sure to leave enough time for the processing window.
- Send contractors 1099-NEC forms. Your company will need to distribute 1099-NEC forms to every contractor that you paid $600 or more in the previous year. Make sure to prepare all required copies to send to your workers, the Internal Revenue Service, and the state tax agency, if applicable. Your company will also need to maintain a copy for your own records.
How Advanced Micro Solutions Can Help
Setting up your independent contractor payroll software should be straightforward. Once you select a reliable program, you can easily track your company’s independent contractor and payment details. Our accounting and payroll software ($134) will easily process your company’s direct deposit payroll information. You can also print your independent contractor checks individually or by selecting a specific date range.
One of the most important parts of selecting software is knowing that someone is available on the other end who can help you troubleshoot. If you encounter issues, you can call Advanced Micro Solutions’ customer support team at (405) 340-0697. Prospective users can also explore a free demo program. Advanced Micro Solutions’ demo can help small businesses decide what tools they need most for their payroll services.