Did that headline just give you hives? Are you trembling thinking of the last time you tried to switch payments systems? We get it. Switching any software or system is always complicated, let alone one as integral to your business as your payments software. So it's reasonable for anyone to be less than enthusiastic about making any changes. But if you're using the same system for both your employee payroll and your contractor payments, You really should consider separating your 1099 payments. You're not just adding administrative headaches, but opening yourself up to misclassification issues.

So here's five good reasons why you should consider using a separate payment platform for your contractors, freelancers, and other 1099 workers.

  1. Tailored for Contractor: Contractors are not your typical 9-to-5 crew - even those that work from 9 to 5. They work on projects, milestones, and often have different payment terms than your W2 employees. Having a separate payment system means you can customize it to match their unique needs. Milestone payments? Check. Flexible invoicing options? You got it. It's like having a payment system that that is fluent in contractor language.
  2. Stay on the Right Side of Compliance: We all know how much compliance and regulations changed for contractors. New regulations around 1099 classification came out just this year. Having a dedicated payment system ensures you're ticking all the boxes when it comes to taxes, regulations, labor laws, compliance and contractual obligations.
  3. Keep Your Finances in Order: Let's talk money. Contractor invoices and payments can quickly get overwhelming if you're trying to track everything with your regular payroll system. But dedicated contractor setup, you get a crystal-clear view of where your contractor dollars are going. Budget forecasting? Easy peasy. Auditing? Done and done. Insurance tracking? Say less.
  4. Smooth Contractor Management: Wrangling contractors can sometimes feel like herding cats. But with the right tools, it's a breeze. A dedicated payment system can integrate seamlessly with your contractor management processes. That means smoother onboarding, clearer communication, and better performance tracking. Say goodbye to endless email threads and hello to streamlined contractor bliss.
  5. Avoid Overpaying for Insurance: Did you think we'd let this one go without talking about accident and injury coverage? We all know workers comp is tied your payroll and OAI can be setup to pay-as-you-go by the hour. What's a better way to make sure your records are sparkling clean for payroll/payment associated costs than separated systems for employees and contractors? Go on, we'll wait...

So there you have it. Whether you're worried are about compliance, control and costs. Or just trying to simplify administering payments for both employees and contractors. Having separate systems for your W2s and your 1099s can save you time, hassle, and, yes, money.

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Interested in learning more about how GigEasy can help you? We're partnering with select business to join as Design Partners for our new Payments portal.

‍Click here to set up an intro call and learn more.