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Payrolling service for contractors

Lisa Wu's Profile

I am wondering what payrolling companies people are using for their contractors.

To avoid bringing in contractors on 1099s, I am looking for a reputable and low cost payrolling company to w2 contractors.



Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

If you have a CPA firm; you could see what they would charge to do it for you and compare that to outsourced companies (but with using an outsourced company, you would still have to upload hours). I have researched ADP and Pay Choice within the last six months and Pay Choice would have been my selection had I decided to outsource it. They were super friendly, and way more cost effective than ADP.

Another option to consider would be a part time bookkeeper that could work a couple hours a week just doing your contractor's payroll.

Have you considered the cost to the company by switching from 1099 to W2? Are they actually employee's or subcontractors would be my other question.

Nicole Lucarelli
Title: Director
Company: Financial Services
LinkedIn Profile
(Director, Financial Services) |

I haven't researched cost recently, but a few others to think about are MBO Partners, Secure Talent, and Zero Chaos. If you have workers that are legitimate 1099s, the company should be able to make this assessment for you.

What you want to think about in comparing costs are what they are adding to the bill rate you are paying the contractor. The firm should be able to break this down for you. This would include a fee for any initial screening. Consider how much liability are they accepting based on their assessment. They should also help you manage the workers in either category for a tenure or other risk management techniques.

Also, if you have any relationships with staffing agencies, they often can do this as well.

Michael Garibaldi
Title: Owner
Company: MTG & Ass., Ltd.
(Owner, MTG & Ass., Ltd.) |

When I ran a staffing company, we did this for a few big clients if they were also using our traditional temp to hire and staffing services.


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