11 Best Contractor Payroll Software for US Employers in 2026

With the remote workplace model becoming widely adopted, the US has reported a booming rise in the number of self-employed workers. According to Statista, 86.5 million people will be freelancing in the US by 2027, making up 51% of the total workforce in the country.¹

While that’s great for the US economy, employers are now under more pressure to process payroll while staying compliant with federal and state regulations. Managing contractor payments is quite different from handling a full-time employee, as it comes with varying rates, invoices and pay periods across projects.

That’s where contractor payroll software helps. These platforms simplify payments, automate 1099 filings and enable businesses to manage payroll taxes without spreadsheets or manual errors. Many solutions also support certified payroll reporting for accurate compliance.

The right contract payroll platform should make it as easy to pay contractors in your city as it is to send funds overseas. In this guide, we’ve reviewed the 11 best contractor payroll software for US employers to help you make an informed decision.

Our Criteria for Selecting the Top Contractor Payroll Software

To select the right contractor payroll system, you need to see past the brand names and focus on the features and prices. Based on our evaluation, the best contractor payroll platform must offer:

• Transparent pricing that clarifies whether costs scale by contractor, transaction or monthly subscription.
• Contractor-specific payroll tools, such as flexible pay periods, direct deposits and automated 1099 preparation.
• Compliance support for payroll taxes and, where relevant, certified payroll reporting for government-funded projects.
• Scalability for different business sizes, including small businesses with a handful of freelancers or enterprises managing thousands of contractors.
• Integration with accounting systems and user-friendly contractor portals to streamline collaboration.

11 Best Contractor Payroll Software (2025)

Software	Key Features	Fees / Pricing Notes	Best For
QuickBooks Payroll	Fast direct deposit, automated 1099 forms and payroll tax handling	Starts at $15/mo, including 20 contractors +$2/additional contractor.	Small to midsize businesses already using QuickBooks
Rippling	Global contractor payments, compliance automation and HR + IT bundle	Starts at $8/mo	Companies needing all-in-one HR + payroll
Paychex Flex	Contractor onboarding, multi-state taxes and certified payroll reporting	Tiered monthly plans	Employers with complex compliance needs
Papaya Global	Contractor payments in 160+ countries and classification support	Higher per-contractor costs	Distributed teams hiring internationally
Workful	Simple contractor payroll and next-day direct deposit	30-day free trial, paid package starts at $9.95/mo.	Small businesses prioritizing ease of use
SurePayroll	Contractor-only payroll, mobile app and 1099 prep	Starts at $20/mo + $4 per employee	Budget-friendly small businesses
Wrapbook	Project-based pay, onboarding and timecards	Unspecified pricing	Production, media and project teams
Everee	Instant/same-day pay and flexible pay scheduling	Subscription + instant pay add-ons	Employers offering faster payouts to contractors
BILL	ACH transfers, invoice management and IRS records	Subscription + payment transaction fees	Businesses managing invoices + contractor pay
Melio	Free ACH payouts, card-based payments and 1099 export	Plans start at $2.50/mo	Small firms seeking flexibility in cash flow
Routable	Bulk payouts, API automation and advanced reporting	Enterprise-focused; volume-based pricing	Businesses with hundreds or thousands of contractors

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BatchTransfer’s core strengths for payroll:

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Wise Features	Price
Mid-market exchange rate for currency conversions Payments to countries in currencies Delivery estimator, real-time tracking, pay-to-email & more	Free to sign up for US business accounts, no monthly fees, no minimum balance requirements. Transparent and competitive rates Free access to API, BatchTransfer, and integrations features. You can also get major currency account details for a one-off fee to receive overseas payments.

1. QuickBooks Payroll: Ideal for Small and Midsize Businesses

QuickBooks Payroll is a natural choice for small and midsize businesses for contractor payroll management.² The platform integrates both processes: contractor payrolls and bookkeeping. So if you already have an employer account on QuickBooks Online, you don’t have to create separate systems for each.

What makes QuickBooks Payroll great is its simplicity. As an employer, you can pay contractors quickly, prepare accurate 1099s and stay compliant without juggling any additional platforms.

Features

• Next-day direct deposit for contractors (in selected plans)
• Digital W-9 collection and automated 1099 preparation
• Separation of contractor and employee payments for clarity
• An automated system to pay taxes for W-2 employees, alongside contractor tracking
• Sync with QuickBooks for consolidated financial management

Prices

• Contractor Payments: $15/mo ($7.50/mo - 50% off for 3 months). Includes 20 contractors +$2/additional contractor.²
• Contractor Payments + Simple Start: $53/mo ($26.50/mo - 50% off for 3 months). Includes 20 contractors +$2/contractor.

2. Rippling: An All-in-One Workforce Management Platform

Rippling is a comprehensive workforce solution with powerful contractor payroll features.³ It merges payroll, HR and IT management under one platform, so employers don’t have to juggle various apps for contractor payments.

Its unique contractor edge lies in automation. If you work with both 1099 contractors and full-time employees, you can get instant onboarding, payments, compliance and recordkeeping capabilities across the board.

Features

• Supports US and global contractor payments
• Free integration with industry-leading accounting software, including QuickBooks, Xero and NetSuite.
• Automated onboarding with digital contractor agreements
• Multiple pay schedule options for diverse projects
• Built-in compliance tools to avoid misclassification risks
• Analytics dashboards that track spend by contractor/project

Prices

Pricing starts at $8/month, depending on the package you choose.³

3. Paychex Flex: A Reliable Contractor Payments Software

Paychex Flex is one of the most reliable contract payroll software in the US, known for its robust compliance support.⁴ It offers employer protections in industries with strict oversight, like construction or healthcare.

With Paychex Flex, employers can benefit from various reporting features under federal and state laws. With its wide industry reach, the platform is ideal for employers who require both contractor payroll flexibility and comprehensive compliance.

Features

• Contractor onboarding dashboards and self-service access
• Report customization for better business decisions. Create your payroll journal, cash requirements, etc.
• Direct deposit and digital pay options
• Automatic 1099 preparation at year-end
• Integration with leading contractor payroll software like QuickBooks, Xero and more
• Certified payroll reporting tools for regulatory-heavy industries

Prices

Contact their customer service team for pricing info.

4. Papaya Global: Ideal for Local-Currency Payments

Papaya Global enables employers to manage payroll for contractors across more than 160 countries.⁵ If your business works with contractors from over the globe, the platform can simplify local compliance, exchange rates and classification rules.

This means employers don’t have to look into country-specific tax forms or contract compliance requirements for each contractor. With Papaya Global, they can manage distributed teams smoothly, and contractors, on the other hand, can receive local-currency payments directly without any international bank fees.

Features

• Payments across 160+ countries in local currencies
• Compliance infrastructure for international contractor classifications
• Digital agreements and onboarding tools
• Contractor wallet and e-wallet payment options
• Centralized dashboards consolidating global reporting

Prices

Pricing varies by country and workforce size. Contact the company for your quote.

5. Workful

Workful is designed for small businesses that want straightforward contractor payroll software with no frills.⁶ Its unique value is its easy-to-use interface. Employers can run payroll within minutes and rely on automation to handle tax filings and contractor documents.

Unlike heavier platforms, Workful emphasizes affordability and user-friendliness, making it accessible even for first-time payroll managers. Contractors can also benefit from certain features like self-service portals and next-day deposits.

Features

• Integrates payroll, timesheets and HR in one platform
• Mobile time clock feature for accurate and timely payroll
• Easy filing of federal and state taxes
• Customizable reports on different payment aspects

Prices

• A free 30-day trial
• Workful Books Online: $9.95/mo
• Workful Books Online Unlimited: $59.95/mo.⁶

6. SurePayroll: Best for Basic Payments

SurePayroll by Paychex offers almost all the features small businesses or startups need for contractor payment management.⁷ It is ideal for employers who want to leverage a contractor payroll software for automated payments, tax filing and compliance on a budget.

SurePayroll’s unique advantage is its dedicated contractor-only payroll plan for organizations that don’t employ W-2 staff. This makes it one of the most affordable systems exclusively for contractors.

However, SurePayroll may lack advanced features for large enterprises.

Features

• Contractor-only payroll option
• Free direct deposit & automatic payroll scheduling
• Automated filing and deposit of payroll taxes
• Mobile payroll processing for employers
• Access to reports and pay stubs online 24/7

Prices

• Full Service: $29/mo + $7 per employee
• No Tax Filing: $20/mo + $4 per employee.⁷

7. Wrapbook: Best for Short-Term Projects

Wrapbook is suitable for industries that frequently hire contractors for short-term creative or event-based projects.⁸ It comes with a wide range of project-based functionalities, where employers can onboard, process payments and file forms for contractors who might only be employed for weeks at a time.

This is why Wrapbook is a popular choice for media companies, agencies or productions that assemble temporary teams. On the other hand, contractors enjoy transparent onboarding, fast pay and easy access to tax records.

Features

• Project-focused contractor payroll for temporary hires
• Automated digital timecards for accurate billing
• Onboarding, expenses and payments on the go
• Access to pay history, pay stubs, tax documents and more from the mobile app
• Real-time payment status updates

Prices

Contact the company for pricing.

8. Everee: Known for Same-Day Payments

Everee is a modern contractor payroll software that addresses one of the biggest complaints from contractors: slow payments.⁹ It supports real-time, same-day payments, giving freelancers access to pay as soon as they’ve earned it.

For this reason, many employers use Everee to position themselves as contractor-friendly. Meanwhile, contractors benefit from flexible, gig-like pay cycles.

Features

• Instant pay and same-day options beyond standard pay periods
• Customizable contractor pay schedules for both 1099 and W-2 workers
• Mobile-first interface for contractors managing income
• Automated multi-state compliance with IRS reporting
• Dashboards for employers to track payouts in real time

Prices

Contact the company for pricing.

9. BILL: A Comprehensive Accounts Payable Solution

BILL is an accounts payable system that doubles as a contractor payment tool.¹⁰ It manages contractors alongside vendors, invoices and suppliers. Instead of forcing employers to run separate workflows, BILL consolidates everything into one accounts payable platform.

With this contractor payroll software, contractors enjoy ACH-based automated payments and a clear payment history for tax season. Meanwhile, employers track and document all transactions with ease.

Features

• ACH transfer and paper check options
• Automated contractor invoicing and payment approval
• Integrated records with accounting software

Prices

Contact the company for pricing.¹¹

10. Melio: Best for Free ACH Payments

Melio is designed for small businesses that require a flexible payment method without the commitment of a subscription.¹² It enables employers to pay contractors with a credit card, even when those contractors only accept bank deposits.

For businesses balancing client receivables with payroll obligations, this can be an efficient way to manage cash flow. Contractors always receive predictable payments without needing to adapt to the employer’s method.

Features

• Free ACH payments for contractors
• Credit card-to-bank payment option for cash flow flexibility
• Streamlined invoice-to-payment processes
• Syncs with QuickBooks for accurate recordkeeping

Prices

Plans start at $2.50/mo.¹³

11. Routable: Built for Scale

Routable is best for enterprises and high-growth businesses managing thousands of contractor payments.¹⁴ It automates massive volumes of payouts without sacrificing accuracy or compliance.

If you’re operating in industries like staffing, gig marketplaces or delivery networks, Routable can be your ideal choice. Its infrastructure also supports contractors. They remain at peace, knowing that despite scale, their payments are fast and dependable.

Features

• Bulk contractor payouts at scale
• Advanced API integrations with ERP/accounting
• Robust reporting for regulatory compliance
• Supports international payouts for global workforces
• Predictable, timely deposits for large contractor bases

Prices

Routable offers custom, enterprise-grade pricing based on volume and integrations. Contact the company for your custom quote.¹⁵

Frequently Asked Questions

What is the best contractor payroll software for a small business?

For small businesses with just a few freelancers, options like Workful and SurePayroll are affordable and easy to set up. If you already use QuickBooks for accounting, QuickBooks Payroll may be the smoothest fit since it integrates both bookkeeping and contractor payroll in one place.

How do payroll solutions for contractors handle taxes?

Most platforms automatically generate and file 1099-NEC forms for contractors, so businesses don’t have to track them manually. While contractors are responsible for filing their own taxes, payroll systems ensure correct documentation of earnings and payments. Many also handle payroll taxes for W-2 employees simultaneously.

Do I need separate payroll services for 1099 contractors and W-2 employees?

Not necessarily. Many payroll providers like Rippling, QuickBooks and Paychex Flex allow you to pay both types of workers in the same system. The right choice depends on your workforce mix and compliance requirements.

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Sources:

1. Freelancing Stats for 2025: Market Size, Earnings, and Future Trends | Upwork
2. CONTRACTOR PAYMENTS - Simple, fast contractor payroll | Intuit QuickBooks
3. Payroll | Rippling
4. Global Solutions | Paychex Flex
5. Payments | Papaya Global
6. Product Overview | Workful Books
7. Homepage | SurePayroll
8. Platform Payroll | Wrapbook
9. Homepage | Everee
10. Homepage | BILL
11. Pricing | BILL
12. Payments - Contractors and Freelancers | Melio
13. Pricing | Melio
14. Homepage | Routable
15. Pricing | Routable