The global workforce has continued to shift towards a more independent and flexible model, resulting in more individuals becoming freelancers or independent contractors. A Statista report shows that the number of independent workers in the U.S. jumped from 15.8 million in 2020 to 31.9 million in 2022. While this type of work can offer a great deal of freedom and flexibility, it also comes with its own unique set of challenges, particularly when it comes to payroll management.
SEE: Make your choice with the best payroll software for your small business.
Unlike traditional employees whose payroll tasks, such as check processing, state and local tax compilation and payments, are managed by their employers, freelancers are sometimes responsible for their payroll. Juggling payroll and work can be a time-consuming and complex process. To ease this burden, some payroll software solutions for freelancers can help automate payroll and tax filing processes. Here is a review of some of the best payroll software solutions for freelancers in 2023.
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Top payroll software for freelancers: Comparison table
The table below highlights and compares some of the main features of payroll software for freelancers.
| Product | Independent contractor support | Tax filing | Time tracking support | International payroll processing | Starting monthly price |
|---|---|---|---|---|---|
| Gusto | Yes | Yes | Yes | Yes | Starts at $6/month per contractor |
| Square | Yes | Yes | Yes | No | Starts at $6/month per contractor |
| Rippling | No | Yes | Yes, but comes as an add-on | Yes | Starts at $8/month for every user |
| OnPay | Yes | Yes | Yes, via a third party | No | Starts at $6/month per person |
| Paychex | No | Yes | Yes, but comes as an add-on | No | Starts at $39/month plus $5/month per person |
| SurePayroll | Yes | Yes, but only supported in the top plan | Yes | No | Starts at $19.99/month plus $4/month per person |
Best payroll software for freelancers
Here is a deep dive into our list of top payroll software for freelancers, including their pricing details, features, benefits and drawbacks.
Gusto: Best overall payroll service for freelancers
Gusto is a comprehensive cloud-based payroll automation platform that can handle payroll tasks such as tax filing, tracking payments, onboarding new hires and more. Gusto allows freelancers to focus on their work while it runs tax calculations, sorts out payments on paydays, calculates hours worked and processes 1099s.
Besides covering payroll in all 50 U.S. states, Gusto extends its payroll support to independent international contractors. In addition, Gusto makes payroll support very flexible as you can choose to get charged per person or choose the Contractor-Only plan.
Pricing
- Contractor-Only: This is ideal for independent contractors and costs $6/month per contractor. It is offered without a monthly base fee for the first six months.
- Simple: $40/month plus $6/month per person.
- Plus: $80/month plus $12/month per person.
- Premium: Custom quote only.
Features
- Automated pay and tax filing.
- International independent contractor payroll support.
- Time tracking.
- Unlimited payruns.
- Multiple payment options.
Pros
- Transparent pricing model.
- Supports payroll in 50 U.S. states, including international independent contractors.
- Offers payment flexibility.
- Supports contractor-only plan.
Cons
- The contractor-only plan lacks full customer support.
- Does not support international employee hiring.
To learn more, read our detailed Gusto review.
Square Payroll: Best for offering flexible payment options
Square Payroll is a simple but reliable payroll software designed for easy payroll processing with powerful automation. This solution is popular not just for automatic filings of payroll taxes, but for its support for live payroll services specialists. Square offers time tracking capabilities for easy calculation of hourly rates, ongoing compliance to keep you safe from tax issues and can synchronize with popular tools like QuickBooks Online.
Pricing
Square’s best payroll plan for freelancers is the contractor-only plan, which is billed at $6/month per contractor.
Other plans include:
- Free: Only pay when you take payment.
- Plus: $29/month per person.
- Premium: Custom quote.
Features
- Supports multi-state payroll.
- Automatic tax filing.
- Contractor-only plan.
- Multiple payment options.
Pros
- Live payroll service specialists.
- Flexible payment options, including direct deposit, checks or Cash App, all at no extra charge.
- You can pause billing at any time you do not need Square’s services.
Cons
- Not suitable for contractors that intend to scale.
- Does not support international contractors.
To learn more, read our comprehensive Square Payroll review.
Rippling: Best for global payroll support
Rippling is a unified workforce management platform with features that support payroll management for freelancers. The solution automates payroll and tax processing, onboards employees and contractors in minutes, supports payroll for U.S. and international contractors, offers time tracking capability and integrates with other popular tools. Rippling also makes it possible to pay international contractors in their local currencies and automatically sync HR data with payroll for easy payments.
On top of this, Rippling offers support for mobile access, allowing users to view their pay stubs and carry out other payroll activities on the go.
Pricing
Rippling starts at $8 a month. You can also contact the vendor for a custom quote.
Features
- Global payroll support.
- Unifies HR, IT and finance under one dashboard.
- Automatic tax filing.
- Robust integration capability.
Pros
- Global workforce management.
- 500+ integrations, including QuickBooks Online and NetSuite.
- Pay international contractors in their local currencies.
Cons
- There is no free trial.
- It might be too costly when compared with alternatives.
To learn more, check out our comprehensive Rippling review.
OnPay: Best for transparent pricing
This is another payroll solution with brilliant features that support independent contractors. OnPay simplifies hiring and paying 1099s or freelancers with its combined suite of payroll and HR systems. The solution automates year-end 1099 filings and payments, provides a customizable reporting dashboard and integrates with many accounting software tools.
OnPay offers unlimited payruns, allows you to set different pay rates for different contractors and supports payroll across all 50 U.S. states.
Pricing
OnPay offers its payroll service free for the first month. Subsequently, pricing starts at a $40/month base fee plus $6/month per person.
Features
- Customizable reporting.
- Offers self-onboarding.
- Automated tax filings.
- Unlimited monthly pay runs.
Pros
- One-month free trial.
- Contractors can self-onboard.
- You can set separate payments for different contractors.
Cons
- Lacks a built-in time tracking system.
To learn more, read our comprehensive OnPay review.
Paychex: Best for customer support
Paychex’s flexible and automated payroll solution is ideal for managing payroll for freelancers. Offered as cloud-based software, Paychex can handle key payroll needs such as automatic tax filing and payment, time tracking management, reporting support and multiple payment options like direct deposit, paycard and paper checks.
Paychex’s payroll spans all 50 U.S. states and can be accessed from mobile devices. There is also a wide range of integrations including QuickBooks Online, Microsoft Azure AD and Sage Intacct.
Pricing
Paychex offers three pricing plans:
- Paychex Flex Essential: Starts at $39/month plus $5/month per person.
- Paychex Flex Select: Starts at $44/month plus $3/month per person.
- Paychex Flex Pro: Starts at $89/month plus $3/month per person.
Features
- Automatic tax filing.
- Multiple payment options.
- Customizable dashboard.
- Analytics and reporting.
Pros
- Offers 24/7 customer service and technical support.
- It can be accessed from mobile devices.
- Supports third-party integrations like QuickBooks Online.
Cons
- There is no free trial.
- Time and attendance come as an add-on.
- Integration with some other software attracts additional charges.
To learn more, read our comprehensive Paychex review.
SurePayroll: Best for handling basic tax filing needs
SurePayroll is another payroll solution that offers a handful of services that can manage payroll for independent contractors. For independent contractors or freelancer payroll, the solution provides services such as helping to file for 1099s, running contractor payroll alongside employees in a single dashboard, integration with accounting platforms and up-to-date payroll reports.
With SurePayroll, you can set up payroll on auto mode and run payrolls on mobile devices.
Pricing
Surepayroll offers two pricing plans, which you can use for up to six months for free.
- Self-service plan: $19.99/month plus $4/month per person.
- Full-service plan: $29.99/month plus $5/month per person.
Features
- Unlimited payruns.
- Automatic payroll.
- Extensive reporting capabilities.
- Supports same-day and next-day direct deposit.
Pros
- Easy to set up.
- Supports running payroll on mobile.
- 100% guarantee for payroll regardless of your preferred plan.
- The app can be accessed via mobile, tablet, or desktop.
Cons
- Tax filing is only available in the full-service plan.
- It is not scalable.
To learn more, read our detailed SurePayroll review.
Key features of payroll software for freelancers
Payroll solutions offer numerous features, but which are most suitable for handling payroll for freelancers or independent contractors? Let’s check them out.
Time tracking
One of the key features of payroll software for independent contractors is time tracking. This feature makes it easy to track and record billable hours and accurately bill clients for the time spent on each project. This can help to prevent underbilling or overbilling, which can negatively affect client relationships and revenue.
SEE: Discover the best payroll apps for your business.
Tax calculation
Tax calculation is one of the more difficult payroll tasks that most independent contractors struggle with. Payroll software can easily automate this process, helping to calculate the taxes owed by freelancers based on their income and other factors, such as deductions and credits. This helps to ensure that freelancers comply with tax laws and avoid penalties. Some software may also include tax filing features that allow freelancers to file their taxes directly through the software, which saves time and reduces the risk of errors.
Payment processing
Payroll software for independent contractors also offers payment processing capabilities that make it easy to receive client payments. While some payroll platforms have this as an inbuilt feature, others may integrate with popular payment platforms to pull off this process.
SEE: This list comprises the best free payroll software solutions.
Reporting
Viewing payroll reports is another crucial feature of a quality payroll solution. Reporting capabilities allow users to generate reports on various financial metrics, including income, expenses and tax liabilities. These reports can provide valuable insights into financial situations and help users make informed business decisions.
How do I choose the best payroll software for freelancers?
Choosing the best payroll platform for your business will depend on your specific payroll needs. However, there are essential factors you should consider when adopting a payroll solution for freelancers or independent contractors.
Consider payment processing options
Some vendors offer limited payment options, thereby limiting your choice of how to receive payments. You should find out what payment options each platform offers and determine whether these meet your requirements.
Check the payroll jurisdiction covered
Most independent contractors or freelancers who work for international clients wouldn’t want to run into hitches when they want to receive payments from a client. While some payroll solutions offer global payment support, others are limited to specific geographies. With that in mind, be sure to check which jurisdiction each payroll software covers.
SEE: Here’s our buyer’s guide for the top international payroll services.
Consider ease of use
It’s important to ensure you can use a software platform comfortably before paying for it. Some payroll solutions look glamorous and can lure you into a subscription, but don’t be fooled. Where possible, check if the solution has a trial version you can test out before making a decision.
Consider access flexibility
Some payroll software can only be accessed from the desktop, which can be limiting if you are used to running things from a mobile device. Check whether the payroll software in question will run efficiently on your other devices before throwing your money at it.
Methodology
For this review of the best payroll software for freelancers, we analyzed the key features that are essential for managing payroll effectively in a freelance business. Factors that informed our choice of products included support for contractor-only plans, time-tracking, ease of use, flexibility of payment and cost. Where possible, we also explored product demos and studied user reviews. These factors influenced our decision to include them in our list of recommended payroll software for freelancers.
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