3 Best 1099 & W-9 Software Options (For Small Business Owners)
Managing contractor 1099s & W-9s — it sounds simple, right? But for small business owners, this task can quickly turn into a maze. A maze filled with deadlines, data, and the ever-looming pressure of keeping the IRS off your back. But guess what? You’re not alone. There are software platforms out there designed to make this process a breeze. At Torino Accounting Group, we help our clients navigate the 1099’s maze so they avoid missing the annual January 31st filing deadline. Not filing your 1099’s can lead to IRS headaches that we discuss in our article about the 5 Biggest Mistakes Small Business Owners make.
Today, we’re diving into three of the top contenders:
Each one has its strengths and its drawbacks. Let’s dive in.
Track1099: No-Frills, All Efficiency
Track1099—if you’re looking for something straightforward, this might be your match.
Pros:
User-Friendly Simplicity: Track1099’s interface? Think of it as your favorite pair of sneakers—simple, comfortable, and just right. You don’t need to be a tech wizard to navigate this platform.
Cost-Effective: Pay only for what you use. At $2.99 per form, Track1099 won’t drain your wallet. Perfect for small businesses counting every penny.
Set It and Forget It: Automated filing is where Track1099 shines. Enter your info, and watch as it files directly with the IRS, emails your contractors, and even manages state filings when needed
W-9 Collection: As easy as it gets. Add in your contractor's name and email and Track1099 does the rest—an automatic email sent to the contractor where they add in their W-9 information.
Cons:
Limited Scope: Specialization is great, but it comes with trade-offs. Track1099 is laser-focused on 1099s—no more, no less. Need more features? You’ll have to look elsewhere.
Integration Issues: If you’re using other accounting software, don’t expect a seamless connection. Track1099’s integration options are limited.
Basic Interface: Functional? Yes. But if you’re after a sleek, polished user experience, you might find it a tad underwhelming.
Customer Service: Doesn’t really exist other than a customer service email address. If you get stuck you’re pretty much on your own.
QuickBooks Payroll: The All-In-One Titan
QuickBooks Payroll—where versatility meets power. This platform isn’t just about 1099s; it’s a full-spectrum payroll solution.
Pros:
Seamless Integration: Already using QuickBooks? Then QuickBooks Payroll is your best friend. The integration is smooth, making financial management almost too easy.
Comprehensive Features: QuickBooks Payroll goes beyond the basics. W-2s, payroll taxes, benefits management, direct deposits—it’s all there. This is the platform for those who need more than just 1099 management.
User-Friendly: Despite its many features, QuickBooks Payroll remains accessible. You won’t need hours of training to get up and running.
W-9 Collection: Just as easy as Track1099. Add in your contractor's name and email and Track1099 does the rest. An automatic email is sent to the contractor where they add in their W-9 information.
Customer Service: Above average. If you have a problem you can start a chat or receive a call back usually within 5 to 10 minutes
Cons:
Pricey: Starting at $45 per month, plus $5 per employee, QuickBooks Payroll can be a bit steep for small operations. But for those needing its breadth of features, it’s an investment worth considering.
Feature Overload: If you are a small business with simple needs, then QuickBooks Payroll might feel like overkill. Sometimes, less is more.
Learning Curve: With great power comes... well, a bit of a learning curve. You’ll need to invest some time to get the hang of everything QuickBooks Payroll offers.
Gusto: The New Kid on the Block
Gusto is the fresh face in payroll management, and it’s quickly winning over small businesses.
Pros:
Beyond Payroll: Gusto isn’t just about getting paychecks out the door. It handles employee benefits, and direct deposits, and even offers financial wellness tools for your team.
Affordable and Feature-Rich: Gusto starts at $40 per month, plus $6 per person—competitive pricing for what you get. It’s the sweet spot between cost and capability.
Modern, Intuitive Interface: Gusto is known for its clean, easy-to-navigate design. It’s modern, it’s fresh, and it’s designed with small business owners in mind.
Cons:
U.S.-Centric: Gusto works great—if you’re based in the U.S. For international businesses, its features might not hit the mark.
Limited Integrations: Gusto plays nice with some apps, but it doesn’t have the extensive ecosystem you might find with QuickBooks.
Contractor Features Lacking: While Gusto excels with full-time employees, its contractor management tools don’t go as deep as those offered by Track1099.
Customer Service: They have a chat and call back feature, but the support is sub-par from our experience.
The Price Breakdown
Now, let’s talk dollars and cents. Here’s how the costs stack up:
Track1099: $2.99 per form.
QuickBooks Payroll: $45/month + $5 per employee.
Gusto: $40/month + $6 per person.
Which Platform is Right for You?
So, where does that leave us? If you need a simple, effective tool for managing 1099s, Track1099 is your go-to. It’s cost-effective, user-friendly, and gets the job done without any extra fuss. But if your needs stretch beyond 1099s—if you’re looking for a full-fledged payroll system—QuickBooks Payroll offers a more robust solution. If you only have employees in one state and are already using Gusto as your payroll system, Gusto might be your best bet.
Our choice – Track1099. Why?
Low cost and only pay for what you use (great option is you only have a handful of contractors)
Easy to use
Contractor 1099 and W-9 information is stored separately from your accounting platform. If you decide to change your accounting software, you won’t lose your contractor information
At Torino Accounting Group, we’re here to help you navigate your small business challenges, providing the expertise and support you need to build a successful business.