Employers use the W-9 Form to gather basic information about the independent contractors they hire, like name and Social Security number. They use it to prepare year-end 1099 forms that show exactly how much money each contractor was paid. The form is easy to fill out and doesn’t need to be submitted to the IRS….
About the Author
Charlette Beasley
Charlette Beasley is a writer and editor at Fit Small Business focusing on payroll. With more than a decade of accounting and finance experience, Charlette has worked side-by-side with HR and accounting leaders to establish and help implement payroll best practices, controls, and systems. Her experience ranges among small, mid-sized, and large businesses in industries like banking and marketing to manufacturing and nonprofit.
Charlette has a BBA degree in accounting from Henderson State University and an MBA from Harding University. Her expertise has been featured in Fairy God Boss, The Ladders, UpJourney, and Showbiz Cheatsheet.
When not talking about payroll or human resources, she enjoys writing fiction and adventuring through Florida with her kids.
Best Payroll Software for Paying Contractors
The best contractor payroll services help you onboard new independent contractors and collect the forms you’ll need for end-of-year tax reporting; many even offer direct deposit at no additional cost. Before deciding on a service, it’s important to evaluate pricing, because some providers have low-cost plans ($5 to $6 monthly per contractor) that you only…
What Is Form 944? Plus 2020 Instructions
Form 944 is an IRS form that very small businesses use to file their employer taxes on an annual basis. It is specifically for businesses that have at least one employee and owe less than $1,000 annually in federal taxes (income tax withholdings plus Social Security and Medicare taxes). This article covers the when and…
Free Pay Stub Template: Tips & Laws on What to Include
A pay stub is a document that serves as a record of an employee’s paid wages in addition to taxes and deductions withheld. In this article, we provide free pay stub templates to help you comply with laws in the 41 states that require employers provide them—even if paying with cash or direct deposit. As…
7 Best Professional Employer Organizations (PEO) Companies for Small Businesses
Professional employer organizations (PEO) bundle benefits and manage human resources (HR) operations (like recruiting, onboarding, payroll, and training) into one service—allowing small business owners to outsource tedious HR management tasks. The best PEO companies have the buying power to negotiate affordable employee health insurance. They can also reduce your workers’ compensation expenses by pooling employees…
Self Employed Payroll: How to Process Your Own Paycheck
When processing payroll for yourself vs employees, choosing the right business structure is key to minimizing taxes. Determining how much and how often to pay helps with managing profitability and cash flow, which is why setting up a self employed payroll system is important. Good payroll services make it easy and support employers with tax…
Final Paycheck Laws Every Employer Should Know in 2021
Final paycheck laws dictate how much time an employer has to issue a final paycheck following an employee’s resignation or termination. In general, federal law does not require employers to issue final paychecks immediately. However, state statutes generally require employers to send out final paychecks on an employee’s last day or within a certain number…
How to Calculate Overtime for Hourly & Salaried Employees
Overtime is an important part of calculating payroll. If you hire employees who are 16 or older, there is no limit on how many hours they can work in a workweek. However, you may have to pay them overtime at a rate of at least 1.5 times their regular pay for hours worked over 40…
Payroll Compliance: Important Payroll Laws to Know in 2021
When you become an employer, you must follow all payroll laws to avoid financial penalties, lawsuits, and even worse, being forced to close your business. Payroll laws specifically govern how you pay your employees and taxes as well as how you report this information. To name a few, this includes overtime pay requirements, payroll taxes,…
ZipRecruiter vs Indeed: Which One Is Right for Your Business?
ZipRecruiter and Indeed are two recruiting and job search sites that help connect employers with talent. Both platforms are well-reviewed, user-friendly, and reach a large number of professionals. ZipRecruiter lets you post jobs free for a limited time, while Indeed has a completely free plan. We compared the platforms to help you choose the best…
Best Employee Time Clocks for Employers in 2021
Employee time clocks help track when employees are working or on break. There are time card machines that work for just one location and newer online employee time clock systems that provide flexibility. Online systems are just a few dollars a month per employee. We considered both types of employee time clocks for ease of…
7 Best Free Applicant Tracking Systems To Consider in 2021
Applicant tracking systems (ATS) are software tools that recruiters and hiring managers use to find top candidates. An ATS saves time by storing applications and tracking job seekers throughout the recruiting process—from job ads to hiring. If you’re starting to ramp up your hiring, you should consider an ATS that is free, simplifies job posting,…