Best Payroll Software for Contractors in 2026
Managing contractor payments, 1099 filing, and international payments. The best tools for contractor-heavy teams.
Last updated: 2026-05-20
Quick verdict
For US contractors only: Gusto Contractor plan ($6/contractor/month) or Deel ($49/contractor/month for more features). For international contractors: Deel or Remote are the clearest options. For a mix of W-2 employees + contractors: Gusto Plus handles both. For very simple 1099-only needs: Wave Payroll ($20/month base).
W-2 employees vs 1099 contractors — what changes
Paying contractors is simpler than payroll in one key way: no payroll taxes to withhold or remit. But contractors introduce their own compliance complexity: correct classification, 1099-NEC filing for contractors paid over $600/year, and international payment compliance for overseas contractors.
The software you need depends heavily on your contractor mix: all US contractors, all international, or a mix. US-only contractor payments can be handled cheaply (Gusto's Contractor-only plan is $6/contractor/month). International contractor payments add currency conversion, local compliance, and payment method complexity — that's where tools like Deel and Remote earn their higher price.
Deel — best for international contractors
Deel is purpose-built for global contractor and employee payments. The contractor plan costs $49/contractor/month and covers contract generation (localized to the contractor's country), payment in 150+ countries via ACH, wire, PayPal, Payoneer, or crypto, compliance document collection, and IP protection clauses. 1099 filing for US contractors is included.
Best for: companies paying contractors in multiple countries, or any team where international compliance is a concern. Deel's contract templates are localized to 150+ countries and are regularly updated to reflect local law changes.
Watch out for: $49/contractor/month is expensive for US-only contractor payments. If all your contractors are in the US, Gusto's $6/contractor/month plan handles everything you need for a fraction of the cost.