In addition to helping businesses with employees run payroll more efficiently, now Square Payroll supports businesses that only want to pay independent contractors. With Square Payroll for contractors, you can pay all your independent contractors in seconds and let us handle all the details.
Square Payroll for contractors helps you save a ton of time (and headaches) by paying contractors with direct deposit. And because all your payments are tracked in one place, Square can automatically generate and file Form 1099-MISC for you.
Independent contractors have a lot of advantages for small businesses — like flexibility and lower costs — and as a result, more small businesses are hiring contractors. In 2014, 8.1 percent of U.S. sole proprietorship business expenses were spent on contractors, according to the IRS (up from 5.8 percent in 2007).
But while independent contractors might save you money in the long run, getting them paid can be a very manual process, and figuring out tax forms like 1099-MISC can be tedious.
“It really simplifies my operations and bookkeeping. With checks I have to worry about when each contractor will cash the check and I have to check the account to make sure I always have enough in there. With direct deposit, I always know when the money is coming out and how much I need to have in my bank account. And I don’t worry about when I need to give my contractors their checks — I can send them direct deposit payments from anywhere,” says Bryan Stylez, owner of Stylez Entertainment.
Square Payroll for contractors also cuts down on the back-and-forth you have with your contractors. Because each contractor has their own online account, they can easily update their personal information and access their Form 1099-MISC without you having to mail them anything.
“I love that the contractors have their own online accounts so they can update their own information when they move or change bank accounts, and at the end of the year they can download their forms themselves. I don’t have to worry about chasing them down if they’ve moved,” says Summer Shakes, owner of Las Vegas Character Visits.
No matter what your team looks like, we have a product that will make your life easier. If you only work with independent contractors, we have a streamlined solution for you: Square Payroll for contractors. And if you decide to hire employees, it’s easy to upgrade to our full-service payroll solution that handles your employee tax payments and filings.
Square Payroll for contractors is available in all 50 states. There’s no subscription fee and the only charge is $5 a month for each contractor you pay.
Need a refresh on the difference between employees and independent contractors? Learn more here.