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No pressure, but you really need to fix your contractor payroll dysfunction

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No pressure, but you really need to fix your contractor payroll dysfunction

No pressure, but you really need to fix your contractor payroll dysfunction 501 291 Heidi McLean

I’m not saying you’re dysfunctional, but if you can answer ‘yes’ to any of the following questions, you probably have some flaws in your contractor payroll systems. But don’t worry! This isn’t like family dysfunction that can only be handled with gobs of counseling and Netflix marathons. We’re talking about something that can actually be solved with tried and true, deeply unsexy, un-volatile systems.

Payroll problems are easy to spot

Have you ever made a contracting mis-hire because of a time crunch?

Do you find yourself fighting payrolling fires at least once a month?

Have you ever lost favor with one of your best contractors by paying late?

Do you have a reputation among contractors for slow payments? Do you think you might but just not know it?

Do concerns about compliance, worker classification, IRS audits, and payroll efficiency keep you up at night?


Yep…we can do better. Now what?

If you regularly hire independent contractors and/or temporary employees, follow these best practices to right the ship:

Go mobile and paperless

Collecting real-time data allows you to monitor your budget. This insight is priceless. Going paperless eliminates a thousand opportunities for error and ensures a digital record of every little thing.

File forms on time   

Plug in important dates as well as their related tasks so tax deadlines and other important dates never sneak up on you. Anytime you miss a deadline with W-2s, 1099s, 1095-Cs, and so on, you’ll end up with more work and headache on the back end. If you’re proactive, you avoid penalties, too.

Classify employees correctly

This is a biggie—and one we discuss often. You’ll need to consider up front whether your workers are full-time employees or independent contractors and whether they’re exempt or not. Getting classification wrong leads to a cascade of issues. If you’re not sure, ask an expert. This is no guessing game.

How to spot the right hiring partner for contractor payroll

If a high level of service would free you up to focus on other aspects of business, you really should think about hiring a partner. Consider a payroll management system. The right hiring partner:

  1. Has checks and balances to make sure contractors receive payments on time
  2. Has a tried and true payroll system that meets state and federal regulations
  3. Is paperless. Because “I need more paper on my desk” is a thing you’ll never hear a reasonable person say
  4. Offers custom solutions for your particular business or industry
  5. Handles employee classification LIKE A BOSS

The bottom line

Payroll dysfunction is a super common, super damaging, and super avoidable issue. Nobody makes great decisions under pressure, and having a systemic problem in a department as important as Payroll can add up to a lot of pressure. Clean up your internal practices and/or hire a partner to take it off your plate so you can sleep better at night and make decisions from that place where you’re a rational, functioning human being.

About PayReel:

At PayReel, we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.