Managing payroll for independent contractors and freelancers can feel like a whole different ballgame. Contractors require 1099 forms, and employers generally don't withhold taxes. That means you need a system that simplifies payments and regulates tax form handling. It should keep your payments compliant, without added stress.
To help you cut through the hassle, we’ve done the research for you. We have thoroughly researched and curated a list of the seven best payroll software for contractors, tailored to the needs of businesses of all sizes, from startups to large enterprises.
Software | Key Features | Pricing (starting at) | Deployment / Platform |
QuickBooks Payroll |
| $88/mo + $6.50/employee | Cloud-based, Web, Desktop (QuickBooks Online) |
Gusto HR |
| $49/mo + $6/person | Cloud-based, Web |
Deel |
| $29/employee/mo | Cloud-based, Web |
Square Payroll |
| $6/month/person | Cloud-based, Web, Mobile (iOS, Android) |
Remote HR |
| $29/employee/m | Cloud-based, Web |
ADP Payrol |
| Custom pricing | Cloud-based, Web, Mobile |
Patriot Software |
| $17/mo + $4/worker | Cloud-based, Web |
QuickBooks Payroll - Best For Businesses Already In The Ecosystem
QuickBooks Online Payroll provides contractor payments via direct deposit with unlimited 1099 e-file capabilities. Users can e-file these forms to the IRS and send copies to their contractors. This makes compliance easier.
QuickBooks Payroll integrates with QuickBooks accounting, making it ideal for businesses already using the platform. There is no limit on the number of payments per contractor, which allows flexibility in managing workforce contracts.
Key Features:
Pros And Cons Of QuickBooks Payroll
Pros | Cons |
Quick to install and runs on a bi-weekly schedule without hassle Customizable menu tabs offer fast quick access to key features Easily assign roles with clear precise permission control | Mixing salary and hourly complicates tax input No time clock integration; manual entry required |
Pricing Of QuickBooks Payroll
QuickBooks Payroll offers three main tiers:
- Payroll Core + Simple Start: $88/month + $6.50/employee/month
- Payroll Core + Essential Start: $125/month + $6.50/employee/month
- Payroll Premium + Plus: $203/month + $10/employee/month
These plans offer a free Expert Assisted trial for 30 days.
Disclaimer: The pricing is subject to change.
Gusto HR – Best For Comprehensive Contractor Management
Gusto's payroll service makes it simple to pay independent contractors. The software handles the paperwork automatically, helping with onboarding and paying contractors with minimal effort. Gusto HR software also offers contractor-only plans for businesses that don't need to pay W-2 employees, and it supports U.S.-based contractors who require a 1099-NEC.
The software offers clear, affordable pricing and provides dedicated support via phone, chat, or email. This makes it an ideal choice for teams with full-time staff, contractors, or a mix of both.
Key Features:
Pros And Cons Of Gusto HR
Pros | Cons |
Auto save tax filings time and ensure compliance Offers sick day requests, paystubs, and benefits in one platform Strong account protection with alerts and authentication app | Limited benefits options, especially for smaller businesses Occasional slow login and delayed notifications |
Pricing Of Gusto HR
Gusto pricing plans and details:
Pay My Team:
- Simple: $49/month + $6/month/person
- Plus: $80/month + $12/month/person
- Premium: $180/month + $22/month/person
- Contractor Only: $35/month + $6/month/contractor (for businesses that don’t have W-2 employees)
Pay Myself
- Solo: $49/month + $6/month
Disclaimer: The pricing is subject to change.
Deel - The Go-To for Paying Global Teams
Deel is a platform for managing payroll and contracts. It handles contract creation, tax document management, and compliance checks. It also includes features for invoice approvals and expense tracking. Tailored for global workforce management, The platform includes a Compliance Monitor that automatically flags changes in local labor and tax laws.
Deel simplifies the legal and administrative challenges of managing international contractors. It manages contracts and payments across 130+ countries. It’s ideal for businesses with a global workforce that need to stay on top of compliance requirements.
Key Features:
Pros And Cons Of Deel
Pros | Cons |
Clear, easy access to contracts, payments, and documents On-time payments reduce stress with international work Transfers are quick, almost like local transactions | Funds are not held in your name, no guarantee in case of company failure Employers may hesitate due to the per-employee cost
|
Pricing Of Deel
Deel offers four main pricing modules; Deel Payroll, Deel HR, Deel IT, and Deel Services.
The Deel Payroll includes the following pricing plans:
- Deel PEO: Free for up to 3 months
- Deel Global Payroll: Starting at $29/employee/month
- Deel Contractor Management: $49/contractor/month
- Deel Contractor of Record: Starting at $325/contractor/month
- Deel EOR (Employer of Record): $599/employee/month
- Deel US Payroll: Custom pricing
Disclaimer: The pricing is subject to change.
Square Payroll – Best For Easy Contract Management
Square Payroll is a user-friendly payroll solution suitable for businesses hiring and paying contractors. It provides payroll with minimal setup requirements and no complicated paperwork, focusing on simplicity. Contractors have access to their own online accounts where they can update personal information.
Contractors can be paid via direct deposit, check, or Cash App, providing flexibility and convenience in receiving payments. It regulates complex tax documentation and payment processing, which makes it easier to meet regulatory requirements.
Key Features:
Pros And Cons Of Square Payroll
Pros | Cons |
Simple employee onboarding, with self-onboarding or import options Simple conversion of worked timecards into payroll processing Easy off-site clock-in and live access to hours and pay stubs via phone | Withholding rate sometimes changes incorrectly, requiring a manual fix Difficulties handling banking info issues with direct deposit |
Pricing Of Square Payroll
Square Payroll offers two main pricing plans:
- Full-Service Payroll: $35/month + $6/month/person
- Contractor-Only Payroll: $6/month/person
Disclaimer: The pricing is subject to change.
Remote HR - Best For Global Compliance And Risk Mitigation
Remote HR platform is a global payroll platform designed to handle the complexities of paying contractors across multiple countries. It is particularly well suited for companies with remote and international contractors as it automates the payroll processes. It also provides compliance and tax filings.
Contractors can use a simple, easy-to-use portal to manage their payments, track tax documents, and keep their details up to date. For businesses hiring across different countries, Remote takes care of local tax and labor laws. This keeps everything compliant without the extra stress.
Key Features:
Pros And Cons Of Remote
Pros | Cons |
All time off, expenses, and payslips accessible in one app Clear paylist showing hours and deductions Effortless and reliable global payroll and compliance | Expense reports require item-by-item approval; no bulk option Some platform navigation takes time to get used to |
Pricing Of Remote
Following are the Remote payroll prices:
- Contractor Management: $29/contractor/month
- Payroll: $29/employee/month
- Professional Employer Organization: Starting at $99/employee/month
- Contractor Management Plus: $99/contractor/month
- Contractor Of Record: Starting at $325/contractor/month
- Employer Of Record: $699/employee/month
- Equity Advanced: Starting at $999/year
Disclaimer: The pricing is subject to change.
ADP Payroll – Best For Automated Contract Management
ADP GlobalView Payroll offers a comprehensive solution for managing both employees and independent contractors. Through its platforms like WorkMarket, businesses can onboard contractors, assign work, calculate payment, and generate tax forms. It streamlines contractor operations by handling verification, invoicing, and payment scheduling, with audit-ready records.
ADP offers multiple payment options and integrates with major HR and accounting systems. Built-in compliance safeguards help reduce misclassification risk and lighten administrative tasks. It supports scaling flexible talent while maintaining control, accuracy, and compliance across different jurisdictions.
Key Features:
Pros And Cons Of ADP
Pros | Cons |
Covers all HR needs: payroll, onboarding, pay stub tracking Stores and copies previous payroll data for accuracy Simple to understand with clear first-time login instructions | Timecard and timeclock issues are causing wrong pay periods Broken timekeeping app with ongoing payroll errors |
Pricing Of ADP
ADP offers plans based on the number of employees at custom pricing:
For 1-49 employees:
- Essential Payroll
- Enhanced Payroll
- Complete Payroll And HR Plus
- HR Pro Pyaroll And HR
For 50+ employees:
- Select
- Plus
- Premium
Disclaimer: The pricing is subject to change.
Patriot Payroll- Best For Budget-Conscious Small Businesses
Patriot payroll offers user-friendly payroll solutions that simplify compliance. It serves over 60,000 customers across the USA with support for up to 500 employees. The platform delivers unlimited payroll processing with comprehensive contractor management. It is an affordable payroll system with free features that competitors can charge extra for.
Patriot enables contractors to receive payments via direct deposit. This simplifies the payment process and reduces the need for manual administration, saving time and effort. This feature is available in both Basic and Full-Service Payroll plans.
Key Features:
Pros And Cons Of Patriot Software
Pros | Cons |
Simplifies payroll process and saves money in the long run Handles payroll deposits and reports accurately and on time Easy-to-use system that automates payroll after setup | Help files lack detail on report usage and function Lacks a "how-to" video library for key tasks like importing data |
Pricing Of Patriot Software
Following are the Payroll Software pricing plans of Patriot:
- Basic Payroll: $17/month plus $4/worker
- Full Service Payroll: $37/month plus $5/worker
These plans are free for 30 days.
Disclaimer: The pricing is subject to change.
Contractor payroll software is an integral need for businesses managing independent contractors. The right solution offers compliance, streamlines payments, and improves overall contractor satisfaction.
The platforms listed above are effective for businesses to manage their payrolls with scalability and compliance. They are desirable for all business sizes when it comes to contractor management. Whether it is an affordable solution like Patriot Software or a more comprehensive, global option like Deel, each one brings its own strengths to the table.
Choosing the one fit solution based on business size, budget, and contractor management complexity will eventually make payment processes easier.
If you are on a hunt for an overall HR and payroll solution, check out our website for more comprehensive payroll software solutions.