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Contractor payment software enables employers to send digital payments to independent contractors and freelancers. This software allows businesses to pay non-employee workers through direct deposit, paycards, payment processor integrations, or digital wallets. It ensures compliance with relevant tax codes and regulations without the need for paper checks, spreadsheets, or payment software not specifically designed for contractor payments. Some contractor payment solutions are tailored for domestic payments within a single country, such as the United States, while others support international payments in multiple currencies. Companies that commonly use this software include those that rely on contractors—often referred to as gig workers or 1099 workers—in industries like healthcare, hospitality, retail, and construction. HR personnel use these platforms to process payments and maintain tax compliance, while contractors can often access funds and track earnings through a portal within the platform.

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