EN

United States (EN)

Australia (EN)

Canada (EN)

Canada (FR)

France (FR)

Germany (DE)

Ireland (EN)

United Kingdom (EN)

EN

United States (EN)

Australia (EN)

Canada (EN)

Canada (FR)

France (FR)

Germany (DE)

Ireland (EN)

United Kingdom (EN)

Blog

A guide to paying U.S. & international contractors

Author

Published

May 10, 2022

Updated

March 28, 2025

Read time

3 MIN

seo_image_0a870534_aBAMAKUq0

If employers want the most robust bench of on-call talent, they must do everything they can to make life easy for their contractors.

Contractors are our competitive edge as a marketing team. I do everything I can to make their choice to work for us a ‘no-brainer.’

Nick Wiesner

VP of Brand at Rippling

How to pay independent contractors in 4 steps

Step 1: Choose your payroll software 

The era of manual payments by direct wire transfer or cutting a business check is over. Instead, look for payroll software that unites all your bookkeeping and regulatory requirements with the ability to manage ancillary data like devices and app permissions. 

While not every contractor may require a loaned computer or access to internal communication platforms, these functions are much easier to have and not use than integrate after the fact—make your purchasing decision based on equal parts capability and flexibility. 

Step 2: Get your W-9 forms

The IRS requires an independent contractor to provide a W-9 form; the form includes the contractor’s contact information and taxpayer identification number. Contractors must provide a W-9 before performing work. Most payroll systems can request these forms. 

Step 3: Get your contractors set up in your payroll system

This is the easy part. Once you have a contractor’s W-9 form, you should have what you need to create a user in your payroll system. Most systems like Rippling will have the ability to add the contractor’s rate and contract details and offer them a time-tracking platform. At this point, you should also set up user permissions for internal applications like Slack, Outlook, Zendesk, or whatever else your teams rely on to collaborate. 

icon-info

How Rippling can help with paying contractors

Rippling unites all facets of contractor management, giving you the ability to oversee your entire workforce in one place.

See the solution

Step 4: Prepare and send 1099-NEC forms

Beginning with the 2020 tax year, businesses that hire independent contractors must send those contractors a 1099-NEC form at the end of the year. Contractors must receive the form by January 31 at the latest. 

According to the IRS, recipients of the form should meet the following four conditions:

  • The payment is made to someone who is not your employee

  • The payment is made for services in the course of your trade or business

  • The payment is made to an individual, partnership, estate, or corporation

  • The payment total is at least $600 for the year

Rippling automatically generates and distributes 1099 tax forms to your contractors. And all past 1099 forms are stored within your Rippling account. 

Rippling houses your contractor data alongside your full-time employees' HR and IT data. Since your entire workforce is in a single platform, taxes and other reporting are one-click simple. Such integration also means that contractors get paid whenever you run payroll (for the contractors out there—you never have to wait on payments with clients that use Rippling.) Get the details after the jump. 

Schedule a demo with Rippling today

Disclaimer

Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.

Hubs

Author

The Rippling Team

Global HR, IT, and Finance know-how directly from the Rippling team.

Explore more

seo_image_6fe1701e_aBAMAKUq0
Aug 21, 2025
|
11 MIN

Understanding 1099 for foreign contractors: what employers need to know

Learn everything about issuing 1099 forms to foreign contractors. Discover how to pay independent contractors internationally, the differences between 1099-NEC and 1099-MISC, and best practices.

seo_image_0a870534_aBAMAKUq0
Aug 21, 2025
|
8 MIN

How to Pay Independent Contractors (1099)? A Complete Guide

Discover how to pay independent contractors while being compliant. Learn everything about 1099 taxes, payroll processing, and more.

seo_image_1b216ac2_aBAMAKUq0
Aug 21, 2025
|
9 MIN

Forms 1099 MISC vs. 1099 NEC: What’s the difference?

The IRS now requires companies that hire independent contractors to use Form 1099 NEC instead of 1099 MISC. This simple guide explains everything you need to know about the 1099 NEC, including who it applies to and exactly how to fill it out.

seo_image_99328686_aBAMAKUq0
Aug 21, 2025
|
7 MIN

W9 vs W2: Crucial differences you need to know

Learn the differences between W9 vs W2 forms, when to use each, and how to determine the correct classification for employees and contractors.

Graphic illustration of three documents in a row with dotted lines slicing two of the documents into parts
Aug 21, 2025
|
9 MIN

What is the difference between W9 vs W8 tax forms?

Learn the key differences between W9 and W8 tax forms, when to use each, and how Rippling automates tax form management for US and international contractors.

seo_image_24cc378d_aBAMAKUq0
Aug 21, 2025
|
10 MIN

W-2 vs. 1099: A comprehensive guide for employers

Discover the differences between W-2 and 1099 workers. From benefits to taxes, see what makes this classification important—and it impacts your business.

seo_image_2384f746_aBAMAKUq0
Aug 21, 2025
|
12 MIN

Form W-8BEN-E instructions and uses for global businesses: A complete guide

Learn how to complete IRS Form W-8BEN-E with Rippling’s step-by-step guide with instructions for foreign businesses. Includes filing tips and common errors.

seo_image_0f67d01e_aBAMAKUq0
Aug 21, 2025
|
4 MIN

Are you misclassifying your global contractors? Find out in 90 seconds.

Use Rippling's tool to check if you're misclassifying independent contractors effectively and legally.

See Rippling in action

Increase savings, automate busy work, and make better decisions by managing HR, IT, and Finance in one place.