Independent Contractor

Need independent contractor payroll?

Bringing on freelancers or contractors can be a savvy business choice. But it can also mean new responsibilities, like issuing 1099s and tracking worker classification.

We can help make it hassle-free. With SurePayroll, you can pay 1099 contractors alongside your employees, generate the right tax forms, and file them on time. All in one system.

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(Are you an independent contractor who needs to pay yourself? Tap here to get information about One Employee Payroll.)

Small business owner carefully stirs food in a pot in the kitchen of his restaurant.

An easy online payroll solution to pay independent contractors and employees

Contractor and employee support in one place

Manage both through the same dashboard.

Generate and file 1099‑NEC forms

Save time during tax season with access to 1099 forms, W2 forms and other year-end reports.

Pay your team from anywhere

Whether you’re in your office or on the go, you can pay independent contractors or employees from anywhere via our mobile app.

Independent Contractor

Bringing on flexible talent? You need a flexible system

Working with contractors (like marketing consultants, project-based tech support, or remote virtual assistants) offers great flexibility. But it also comes with responsibilities: Misclassifying a worker or missing a 1099 deadline can cause trouble.

Here’s what most restaurant owners are up against:

Misclassification penalties

The IRS uses behavioral, financial, and relationship tests to determine if someone is a contractor or employee. Misclassification can trigger fines.

1099‑NEC requirements

If you pay a contractor $600 or more in 2025 ($2,000 in 2026), you must issue them a 1099‑NEC by January 31 and file it by the IRS deadline.

Keeping track of multiple pay types

Freelancers with variable hours or fixed project rates need clear documentation for reporting and record keeping.

Minimal payroll know-how or tools

Small business owners have to get this right, even without a finance team or experience.

Our Solution

SurePayroll can help simplify paying your team

You can pay independent contractors with confidence, generate year-end 1099s, and file them quickly and easily—using the same solution you use for employee payroll.

It’s just click. Run. Done.

Here’s what you get with SurePayroll

Payroll should be stress-free. So we make sure it is.

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Add your company, employee, bank, and tax information. (Need help? We’ve got your back. And onboarding support is always free.)

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During your first year with SurePayroll, every alternating month will be free. And since there’s no commitment, you can cancel anytime.

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Frequently asked questions

What is “independent contractor payroll”?

Technically, there’s no such thing! It’s important to note that independent contractors and consultants are not employees. This matters when it comes to reporting and tax responsibilities.

But “independent contractor payroll” is often used to mean the process of paying freelancers or consultants and reporting their income through forms like 1099‑NEC.

The good news? SurePayroll can help you pay contractors and employees from the same system.

How do I know if someone should be a contractor or employee?

The IRS looks at three key areas to help determine worker status.

Behavioral control: Do you control how the work is done (schedule, tools, process)? If yes, they may be an employee.  

Financial control: Do they invest in their own equipment or risk profit/loss? That may mean contractor.  

Relationship type: Is the work ongoing and do you provide benefits? That points toward employee status.

There’s no single deciding factor, because the IRS considers the full working relationship. If you're unsure, you can submit Form SS‑8 to the IRS for an official determination. SurePayroll can help you pay your team members, whichever path is right for your business.

When do I need to send a 1099‑NEC?

If you pay a contractor $600 or more in 2025 ($2,000 in 2026), you must provide them with a 1099‑NEC by January 31 and file it with the IRS.

Can I pay contractors and employees together?

Yes—SurePayroll supports both pay types in one solution, so you're ready for scale.

Can SurePayroll handle my 1099 forms for me?

Yes—we can help you prepare, file, and send 1099s to contractors and the IRS.

Related resources

Learn how small businesses can 1099 someone to pay independent contractors correctly.

Pay contractors and employees quickly and easily

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