Which providers file 1099-NEC forms automatically?

Gusto, Square Payroll, and OnPay all include year-end 1099-NEC filing at no extra charge for their contractor payment plans. QuickBooks Payroll includes 1099 filing with any plan. Patriot Software charges separately for 1099 filing. Wave does not have a dedicated contractor payment plan and requires manual 1099 preparation.

Home › Contractor Payroll

Last verified April 2026

Best Payroll Software for Contractors (1099 Workers) 2026

For contractor-only businesses, Square Payroll's $0 base + $6/contractor is the cheapest option. Gusto Contractor-Only at $35 + $6 includes better 1099 automation and international support. For mixed W-2 and contractor teams, OnPay or Gusto Simple is more cost-effective.

Key insight most sites miss: Most "best payroll for contractors" articles recommend full payroll software. For pure 1099 businesses, full payroll software is overkill. You need W-9 collection, ACH payment processing, and 1099-NEC filing - nothing more.

Do You Actually Need Payroll Software for Contractors?

Contractors (1099 workers) are not employees. You do not withhold taxes from their payments. They handle their own self-employment taxes. What you do need:

1.W-9 collection before first payment: You need their legal name, address, SSN or EIN, and tax classification. This is your legal protection against penalties for not filing a 1099.
2.Payment processing: ACH bank transfers are cheapest. Some businesses use PayPal or Wise for international contractors, though these create tax complications.
3.1099-NEC filing by January 31: For any contractor paid $600 or more in the calendar year. The IRS penalty for missing or incorrectly filing a 1099 is $60 to $310 per form.

Dedicated contractor payment tools handle all three. Full payroll software (designed for W-2 employees) is overkill if you have zero W-2 workers.

Contractor-Only Pricing Matrix

Monthly cost at different contractor counts across the main contractor payment options:

Provider	3 contractors	5 contractors	10 contractors	25 contractors	50 contractors
CheapestSquare (contractor-only)	$18	$30	$60	$150	$300
QuickBooks Contractor Payments	$21	$25	$35	$65	$115
Best overallGusto Contractor-Only	$53	$65	$95	$185	$335
OnPay (unified)	$58	$70	$100	$190	$340
Rippling (contractor module)	$59	$75	$115	$235	$435

Last verified April 2026. Rippling estimates shown; actual pricing requires a quote.

W-9 Collection and 1099-NEC Filing by Provider

Provider	W-9 collection	1099-NEC filing	Extra cost	International contractors
Square Payroll	Automated	Yes	Included	No
Gusto Contractor-Only	Automated	Yes	Included	Yes (Global add-on)
OnPay	Automated	Yes	Included	No
QuickBooks Payroll	Automated	Yes	Included	No
Patriot Full-Service	Manual	Add-on	$20-$50 extra	No
Wave Payroll	Manual	Manual	N/A - manual	No

International Contractors

Paying international contractors involves additional complexity: currency conversion, local labor law compliance, and determining whether the worker truly qualifies as an independent contractor under local rules (misclassification risk is higher in some countries). A few providers handle this:

Gusto Global: Add-on to any Gusto plan. Handles contractor payments in 120+ countries. Pricing varies by country; expect $25-50 per contractor per month.
Rippling Global: Part of the Rippling platform. Similar international coverage, module-based pricing.
Deel: Specialist international contractor and EOR platform. Strong for agencies and teams with predominantly international contractors. Priced from $49/contractor/month.

For domestic (US-only) contractor payments, Square Payroll or Gusto Contractor-Only are the clear choices based on price and feature quality.

Mixed Teams: W-2 + 1099

If you have both W-2 employees and 1099 contractors, the contractor-only plans don't apply. Your options are:

OnPay

$40 + $6/worker

Unified pricing: W-2 and 1099 cost the same. Best for mixed teams where contractors and employees pay the same rate.

Gusto Simple

$49 + $6/worker

W-2 employees and 1099 contractors on the same plan. Slightly more expensive than OnPay but better HR tools.

QuickBooks Core

$50 + $6/worker

W-2 and contractor payments via Contractor Payments add-on ($15 + $2/contractor). Best for QBO users.

FAQ: Contractor Payroll

Do I need payroll software if I only pay contractors?

You don't need full W-2 payroll software. But you do need: W-9 collection, ACH payment processing, and 1099-NEC filing. Dedicated contractor tools like Square Payroll ($0 + $6/contractor) or Gusto Contractor-Only handle all three.

What is the cheapest way to pay contractors?

Square Payroll contractor-only plan: $0 base + $6/contractor. For 5 contractors that is $30/month. QuickBooks Contractor Payments is cheapest per contractor at high volumes (15+).

Which providers file 1099-NEC automatically?

Gusto, Square Payroll, OnPay, and QuickBooks all include 1099-NEC filing at no extra charge. Patriot charges extra. Wave requires manual 1099 preparation.

Also see: cheapest payroll options | cost calculator | payroll by entity type