Data as of Sep 21, 2026 · Based on 322 AI responses from ChatGPT Search and Google AI Mode · See how Parse measures this
Selecting the right tool for contractor payments depends on company scale. For high-volume needs, 
Brands AI recommends here
Named in 66% of answers
Best for ongoing contractor management. It offers a dedicated plan for handling the entire lifecycle, including contractor self-onboarding and direct deposit, plus reliable 1099-NEC filing at year-end.
Named in 47% of answers
Best for solopreneurs and small businesses seeking a low-cost, all-in-one hub. It combines business checking with built-in bookkeeping and automatic 1099 tax filing tools. It is not a traditional bank.
Named in 34% of answers
Named in 33% of answers
Best for high-volume businesses. It automates mass payouts, tax form collection, and 1099 filing through an API-focused system. It is less suited for small teams looking for basic banking services.
Source | Citation share |
|---|---|
Best 1099 Automation Platforms (January 2026) | Routablehttps://www.routable.com/resources/best-1099-automation-platforms-high-volume-businesses/ | 5% |
 Best Payroll Software for 1099 Contractors - Wisehttps://wise.com/us/blog/batchtransfer-payroll-software-1099-contractors | 4% |
11 Best Contractor Payroll Software for US Employers in 2026 - Wisehttps://wise.com/us/blog/batchtransfer-contractor-payroll-software | 3% |
 6 Best Contractor Payment Software for Compliant Payments | Slashhttps://www.slash.com/blog/best-contractor-payment-software | 3% |
 Best 1099 Software for Small Business 2026: Top 10https://www.bolto.com/blog/best-1099-software-for-small-business | 2% |
6 Reasons To Pay 1099 Contractors Using Foundhttps://found.com/resources/pay-contractors-through-found | 2% |
 Wingspan: Contractor Payroll & Payments Platformhttps://www.wingspan.app/ | 2% |
Found | Easily onboard, pay, and manage contractors—for free. Found is your one-stop-shop for banking, bookkeeping, taxes, and managing 1099 contractors.https://found.com/contractor-management | 2% |
 1099 Contractor Payments | Branchhttps://www.branchapp.com/use-cases/1099-independent-contractor-payouts | 1% |
Found vs. Bank of America: Which Is Better for Small Business ...https://found.com/resources/business-banking/found-vs-bank-of-america | 1% |
If your business pays **many 1099 contractors**, the key distinction is whether you want a bank account that merely *sends ACH* or one that handles the **W-9 → contractor payment → 1099 tracking/filing** workflow. Solution | Contractor payments | W-9 / 1099 workflow | Payout tracking | Best fit --- | --- | --- | --- |…
If your business pays many 1099 contractors, the key distinction is whether you want a bank account that merely sends ACH or one that handles the W-9 → contractor payment → 1099 tracking/filing workflow.
| Solution | Contractor payments | W-9 / 1099 workflow | Payout tracking | Best fit |
|---|---|---|---|---|
| Found | ACH and contractor payments | Built in | Built in | Businesses where 1099 administration is the priority |
| Novo | ACH, checks | Payment data can flow to QuickBooks for 1099 filing | Good transaction history + QuickBooks | Simple, low-cost contractor payments |
| Mercury | ACH, wires, checks; recurring/scheduled payments | Primarily requires an accounting/payroll layer | Very good dashboard, approvals, accounting integrations | Larger/tech-oriented businesses with more sophisticated payment workflows |
| Relay | ACH and vendor payments | Not as deeply integrated for 1099s | Very good account/bucket organization | Agencies/businesses wanting strong cash-flow and account segregation |
1. Found — simplest if 1099 administration is the pain point. Found's contractor workflow includes W-9 collection, ACH payments, contractor tracking, and 1099-NEC e-filing, which keeps the process in one system rather than stitching banking together with separate contractor software.
2. Mercury — strongest if you have a larger operational finance workflow. Mercury lets you pay contractors by ACH, wire, or check and supports scheduled/recurring payments and approval flows. It also integrates with accounting systems such as QuickBooks, Xero and NetSuite. The tradeoff is that its contractor tax workflow isn't as natively consolidated as Found's.
3. Novo — good if you want straightforward ACH + bookkeeping. Novo offers unlimited outgoing ACH without a per-transaction fee and QuickBooks integration; its contractor guidance specifically describes collecting W-9s, paying subs, and exporting payment data for 1099-NEC filing.
4. Relay — particularly useful when you have lots of payments and want organizational controls. Relay is more focused on separating business cash into multiple checking accounts and managing permissions/cards. It integrates with QuickBooks and Xero, but you'll generally need another system for the actual 1099 workflow.
If by "simplest" you mean "I don't want my bookkeeper or staff reconciling contractor payments across three different systems," I'd look hardest at Found. Its 1099-specific workflow is the most directly aligned with that requirement.
If instead you have 50–500+ contractors, multiple people approving payouts, recurring payments, or more complex accounting, I'd investigate Mercury + dedicated AP/1099 software rather than choosing a bank solely for its 1099 feature.
One important tax point: for many businesses, Form 1099-NEC generally applies to $600+ of nonemployee compensation, but there are exceptions and entity/payment-type rules, so your accountant or filing service should determine who actually receives a form.
If you tell me roughly how many contractors you pay (e.g. 20, 100, 500), average monthly payout volume, and whether you use QuickBooks, I can narrow this to the most appropriate setup and estimate the software cost.
When you are paying a high volume of 1099 contractors, relying purely on a standard digital banking account (like Novo , Mercury, or Relay) forces you to piece together separate tools for W-9 collection, tracking payments, and e-filing…
When you are paying a high volume of 1099 contractors, relying purely on a standard digital banking account (like Novo , Mercury, or Relay) forces you to piece together separate tools for W-9 collection, tracking payments, and e-filing 1099s.
The simplest solutions combine fintech banking/payment rails with automated tax compliance engines . Top options depend on your volume and whether you need domestic or global reach:
If you manage a large roster of domestic and international contractors and want an end-to-end system that handles the money movement and the tax forms, Tipalti is a gold standard.
For domestic-heavy contractor operations that look like standard vendor accounts payable, BILL integrates smoothly into operational workflows.
If your business is a platform or app that needs to programmatically pay out third-party providers or contractors via API, Stripe Connect automates the heavy lifting.
If you already use a preferred business checking account for cash flow but need a specialized payout layer to disburse funds globally, Trolley (formerly PaymentRails) streamlines the mechanics.
To help narrow down the ideal platform for your workflow, let me know:
If your main problem is **paying lots of U.S. 1099 contractors and keeping the year-end reporting clean**, I’d narrow the field to **Ramp, Mercury, and Found**, with a separate contractor-payroll product like Gusto if you want payroll-grade administration. Platform | Best for | Contractor payments | W-9 / 1099…
If your main problem is paying lots of U.S. 1099 contractors and keeping the year-end reporting clean, I’d narrow the field to Ramp, Mercury, and Found, with a separate contractor-payroll product like Gusto if you want payroll-grade administration.
| Platform | Best for | Contractor payments | W-9 / 1099 workflow | My take |
|---|---|---|---|---|
| ramp.com | Larger contractor/vendor volume + finance teams | ACH, checks, bill pay | Excellent — W-9 collection, 1099-NEC/MISC filing | Best overall for a finance team |
| mercury.com | Banking + contractor payments in one place | ACH, domestic/international wires, checks | Very good — W-9 collection and 1099 filing | Best banking-first option |
| found.com | Small businesses/agencies with lots of freelancers | ACH | Excellent — W-9 + 1099 workflow is built in | Simplest for a small operation |
| novo.co | Very small businesses | ACH/check | Good bookkeeping integration, but less comprehensive natively | Good low-complexity bank account |
| gusto.com | Contractor payments that may become W-2 payroll | Contractor ACH | Excellent | Best if you'll eventually have employees |
1. Ramp — best if you're paying dozens/hundreds of contractors
Ramp's Bill Pay workflow is particularly compelling because it combines vendor onboarding, payment records, W-9 information and 1099 reporting. Its current system can identify 1099-eligible vendors and electronically file 1099-NEC/MISC forms.
The big advantage is that you're not merely getting a bank account that records ACH payments—you get an accounts-payable workflow around those payments.
2. Mercury — best if you want banking + payments together
Mercury is unusually strong if you want the operating account itself to handle the contractor workflow. It supports ACH, wires and checks, lets contractors provide their payment information through a secure link, collects W-9s, and supports 1099-NEC/MISC filing.
That's probably my choice for a startup, agency, or professional-services business that wants to avoid stitching together a bank + AP platform.
3. Found — potentially the simplest
Found is particularly interesting if the company is relatively small and the owners want the fewest moving pieces. Its current offering bundles W-9 collection, ACH contractor payments and 1099-NEC e-filing.
I'd favor it over Mercury/Ramp when simplicity matters more than sophisticated approvals, accounting controls, and treasury features.
If by "issuing 1099 payments" you mean paying contractors throughout the year and then automatically producing their 1099s, I'd prioritize:
W-9 collection → contractor onboarding → ACH payment → payment ledger → 1099 calculation → e-filing → contractor delivery
rather than simply looking for a fintech with ACH.
For example, Novo can pay subcontractors by ACH/check and export transaction data to QuickBooks for 1099-NEC filing, but that's a more bookkeeping-centric workflow than a native end-to-end 1099 system.
If you tell me roughly how many contractors you pay per month, average monthly contractor spend, whether they're all U.S.-based, and whether you use QuickBooks, I can narrow this to the cheapest/easiest setup for your particular volume.
1. Ramp — best if you're paying dozens/hundreds of contractors
Ramp's Bill Pay workflow is particularly compelling because it combines vendor onboarding, payment records, W-9 information and 1099 reporting. Its current system can identify 1099-eligible vendors and electronically file 1099-NEC/MISC forms.
The big advantage is that you're not merely getting a bank account that records ACH payments—you get an accounts-payable workflow around those payments.
2. Mercury — best if you want banking + payments together
Mercury is unusually strong if you want the operating account itself to handle the contractor workflow. It supports ACH, wires and checks, lets contractors provide their payment information through a secure link, collects W-9s, and supports 1099-NEC/MISC filing.
That's probably my choice for a startup, agency, or professional-services business that wants to avoid stitching together a bank + AP platform.
3. Found — potentially the simplest
Found is particularly interesting if the company is relatively small and the owners want the fewest moving pieces. Its current offering bundles W-9 collection, ACH contractor payments and 1099-NEC e-filing.
I'd favor it over Mercury/Ramp when simplicity matters more than sophisticated approvals, accounting controls, and treasury features.
If by "issuing 1099 payments" you mean paying contractors throughout the year and then automatically producing their 1099s, I'd prioritize:
W-9 collection → contractor onboarding → ACH payment → payment ledger → 1099 calculation → e-filing → contractor delivery
rather than simply looking for a fintech with ACH.
For example, Novo can pay subcontractors by ACH/check and export transaction data to QuickBooks for 1099-NEC filing, but that's a more bookkeeping-centric workflow than a native end-to-end 1099 system.
For businesses managing numerous 1099 contractors, **Found** and **Relay** provide the simplest fintech banking and payout tracking solutions by blending built-in tax tracking, W-9 collection, and free 1099-NEC e-filing directly into the banking interface.[](https://ecommerceparadise.com/mercury-vs-found/)…
For businesses managing numerous 1099 contractors, Found and Relay provide the simplest fintech banking and payout tracking solutions by blending built-in tax tracking, W-9 collection, and free 1099-NEC e-filing directly into the banking interface.
The top fintech banking solutions optimized for contractor tracking and payouts feature distinct capabilities:
| Platform | Best For | Core 1099/Payout Feature | Monthly Fee |
|---|---|---|---|
| Found | Sole proprietors & small businesses with heavy 1099 volume | Built-in W-9 tracking, expense categorization, and free 1099-NEC e-filing | $0 (Core) / Paid tiers available |
| Relay | LLCs and corporations needing granular cash-flow sorting | Multi-account budgeting (up to 20 checking accounts), clean ACH/wire payout logging | $0 (Standard) / Paid tiers available |
| Mercury | Tech-forward, venture-backed, or high-volume scaling companies | Robust API automated mass payouts, custom dashboard tracking, and high-limit FDIC insurance | $0 / Paid tiers for scaling teams |
To help narrow down the ideal platform, let me know:
If your main goal is **“pay a large contractor base with minimal admin work, keep a clean payout ledger, and make 1099 season painless,”** I’d prioritize contractor-payment platforms over traditional fintech bank accounts. ### My shortlist Platform | Best for | Contractor payments | 1099 handling | Payout tracking
If your main goal is “pay a large contractor base with minimal admin work, keep a clean payout ledger, and make 1099 season painless,” I’d prioritize contractor-payment platforms over traditional fintech bank accounts.
| Platform | Best for | Contractor payments | 1099 handling | Payout tracking |
|---|---|---|---|---|
| Gusto | Simplest overall | Excellent | Excellent | Excellent |
| Ramp | Finance/procurement-heavy businesses | Good | Good, depending on workflow | Excellent |
| Mercury | Banking + payments | Good for ACH/wires | More DIY | Excellent for banking transactions |
| BILL | Lots of vendor invoices | Excellent | Strong AP workflow | Excellent |
My default recommendation: Gusto. It is unusually well suited to a business whose primary problem is paying people rather than simply moving money. Contractors can be onboarded, paid by direct deposit or check, and have payment history available in their accounts. Gusto also handles 1099-NEC preparation/e-filing, which removes a major year-end reconciliation task.
One particularly useful feature at scale is that Gusto keeps contractor payments, W-9 information, payment receipts, and 1099 forms together; its API also exposes these records if you eventually want to integrate the workflow with your own software.
Don't optimize solely for “can it send ACH?” Almost every modern fintech can move money. The real administrative savings come from:
On those criteria, Gusto is probably the cleanest choice if contractors are the center of the workflow. Gusto specifically supports contractor payment groups, direct deposit, checks, historical payments, and automated year-end 1099 processing.
One tax wrinkle: U.S. 1099-NEC reporting rules changed for payments made in 2026, so I'd make sure whichever system you choose is already configured for the new threshold rather than relying on an old comparison article. Gusto's current documentation reflects the change.
If you tell me roughly how many contractors you pay (e.g. 20, 200, 2,000), how often, average monthly payout, and whether they submit invoices, I can narrow this to the 2–3 cheapest/easiest setups and compare their actual workflow and pricing.
**Mercury, Found, and Tipalti** are top-tier fintech and banking solutions that streamline paying 1099 contractors, automating everything from W-9 collection to payout tracking and year-end tax form generation.[](https://www.youtube.com/watch?v=CB29cfm-cmg&t=273)…
Mercury, Found, and Tipalti are top-tier fintech and banking solutions that streamline paying 1099 contractors, automating everything from W-9 collection to payout tracking and year-end tax form generation.
When managing high volumes of independent contractors, traditional business bank accounts often leave a massive gap in tax compliance and tracking. Modern fintech platforms bridge this gap by combining banking/ledger services with integrated payout and 1099 architecture.
| Platform | Best For | Key Contractor & 1099 Features |
|---|---|---|
| Mercury | Tech-forward startups & scaling online businesses | Automated W-9 collection, invoice scraping, smooth ACH/wire transfers, and native 1099-NEC filing functionality. |
| Found | Small businesses & solopreneurs | Built-in contractor management, automated expense and payout tracking for taxes, digital W-9s, and integrated 1099 tax reporting. |
| Tipalti | High-volume & global mass-payout operations | End-to-end supplier onboarding, multi-method global execution, built-in tax compliance (W-9/W-8), and direct IRS e-filing integrations. |
| Relay | Multi-account budgeting & expense management | Granular sub-accounts to set aside contractor and tax funds cleanly, easy ACH/checks, and clean ledger tracking. |
If you'd like to narrow this down, please share:
If your main problem is **paying lots of 1099 contractors and keeping the payout/tax trail clean**, I’d narrow the field to **Mercury, Ramp, and BILL**. They solve slightly different versions of the problem. Platform | Best for | Contractor payments | W-9 / 1099 handling | Payout tracking | My take --- | --- | --- |…
If your main problem is paying lots of 1099 contractors and keeping the payout/tax trail clean, I’d narrow the field to Mercury, Ramp, and BILL. They solve slightly different versions of the problem.
| Platform | Best for | Contractor payments | W-9 / 1099 handling | Payout tracking | My take |
|---|---|---|---|---|---|
| mercury.com | Banking + contractor payments in one place | ACH, wires, checks | Collect W-9s + file 1099-NEC/MISC inside Mercury | Excellent | Best all-around if you want a bank + payments platform |
| ramp.com | High-volume AP / approval workflows | ACH, checks, cards, wires | W-9 collection + 1099 filing built in | Excellent | Best if you have a finance team and lots of approvals |
| bill.com | Dedicated AP/vendor management | ACH, virtual card, card, wires, checks | Very strong end-to-end 1099 workflow | Excellent | Best if contractor/vendor payments are essentially your AP department |
| relayfi.com | Straightforward small-business banking | Strong banking/payment capabilities | Less compelling for an all-in-one 1099 workflow | Good | Better as a banking platform than a specialized contractor-payments system |
For a business whose workflow is essentially "onboard contractor → collect W-9 → pay them repeatedly → know exactly how much we paid → file 1099", Mercury is unusually clean.
Mercury lets you invite recipients to provide their payment information and tax documents, keeps vendor information together, and lets you pay contractors by ACH, domestic/international wire, or check. It also now supports filing federal and state 1099-NEC/MISC directly from the account.
Its 2026 update specifically added the ability to auto-fill 1099s from payment data and track, edit, void, or resubmit forms, which is exactly the sort of thing that eliminates year-end spreadsheet reconciliation.
I'd favor Ramp when the problem is less "I need a bank" and more "I need an accounts-payable machine."
Ramp can collect vendor payment/tax details in bulk, manage W-9 information, schedule bills, and its 1099 system identifies eligible vendors and handles 1099-NEC/MISC filing.
That's particularly attractive if you have:
BILL is arguably the strongest choice if you're essentially looking for outsourced AP infrastructure rather than primarily a bank.
Its workflow covers W-9 collection/validation → vendor classification → expense categorization → 1099 generation → vendor delivery → IRS and state filing. It also tracks payments made through ACH, cards, wires, checks, etc., so those payments feed the 1099 process.
The downside is that I'd view BILL as AP software that happens to handle payments, whereas Mercury is closer to your business bank that has built contractor payments and 1099s into it.
One important distinction: 1099 filing isn't the same thing as paying contractors. You want the platform to maintain a reliable connection between the contractor's W-9, every payment, payment method, and year-end 1099. That's why I'd prioritize platforms that originate and track the payments themselves rather than simply exporting a spreadsheet at year-end.
If you tell me roughly how many contractors you pay, average monthly contractor spend, whether payments are weekly/monthly, and whether you use QuickBooks/Xero, I can narrow this to the best 1–2 options and estimate the likely cost/workflow for your business.
**Found**, **Relay** , and **Lili** are the standout fintech banking solutions that make issuing contractor payouts and managing 1099 compliance simplest for businesses. Rather than forcing you to juggle separate payroll software and traditional business banking, these platforms embed expense tracking, tax…
Found, Relay , and Lili are the standout fintech banking solutions that make issuing contractor payouts and managing 1099 compliance simplest for businesses. Rather than forcing you to juggle separate payroll software and traditional business banking, these platforms embed expense tracking, tax categorization, and contractor paperwork directly into the banking dashboard.
Top Fintech Solutions for 1099 Payouts
| Fintech Platform | Best For | Key Contractor & 1099 Features | Pricing |
|---|---|---|---|
| Found | All-in-one tax & 1099 automation | Built-in W-9 collection, real-time payout tracking, and automated 1099-NEC preparation. | Free base tier; paid Pro tiers available. |
| Relay | Multi-vendor cash flow and deep ledger control | Detailed transaction tagging, easy ACH/book transfers to multiple accounts, and robust spending structures. | Free checking with no monthly fees or minimums. |
| Lili | Freelancer and small business expense grouping | Expense tracking separated by contractor, automatic tax setting, and integrated bookkeeping helpers. | Free basic tier; tiered paid plans for advanced tools. |
Detailed Breakdown of Solutions
If you want to narrow this down, let me know:
For businesses paying a large volume of independent contractors, **Found is the simplest all-in-one fintech banking platform** because it embeds automated W-9 collection, payout tracking, and free 1099-NEC e-filing directly into your core business checking…
For businesses paying a large volume of independent contractors, Found is the simplest all-in-one fintech banking platform because it embeds automated W-9 collection, payout tracking, and free 1099-NEC e-filing directly into your core business checking account.
While traditional banks treat payouts and tax filings as separate workflows, modern fintechs unify them. The best options depend on your business size, payout volume, and whether you operate domestically or globally:
Found is unique because it handles the entire contractor lifecycle natively inside a free business bank account, removing the need for a separate payroll or tax app.
If your business is larger, VC-backed, or heavily dependent on precise cash-flow budgeting (like the "Profit First" method), these robust business banking platforms offer superior tracking and software integrations.
If your roster of freelancers extends outside the United States, domestic banking platforms will trigger massive wire fees.
If you want to keep your existing traditional bank account but need a high-utility fintech layer to handle massive payout infrastructure via an API:
Comparison of Top Fintech Payout Platforms
| Platform | Primary Benefit | 1099 Filing Capability | Best Suited For |
|---|---|---|---|
| Found | All-in-one native bank + tax app | Built-in & Free | SMBs wanting zero software bloat |
| Mercury | Tech banking + high FDIC limits | Via integrated apps (QuickBooks/Xero) | Venture-backed or scaled corporations |
| Relay | 20 sub-accounts for budgeting | Via accounting integrations | Teams using project-based cash structures |
| Wise | Low-cost multi-currency batch wires | Payout tracking only | Businesses with a heavy global roster |
| Dots | Payout API for any payment rail | Built-in Automation | Marketplaces & high-volume tech platforms |
To narrow this down, could you tell me a bit more about your business?
If your main problem is **paying a large number of 1099 contractors and keeping the payout trail clean**, I’d narrow the field to **Mercury + its Bill Pay**, **Gusto**, and **Relay**, with **Found** worth considering for smaller service businesses. Solution | Best for | Contractor payments | W-9 / 1099 handling |…
If your main problem is paying a large number of 1099 contractors and keeping the payout trail clean, I’d narrow the field to Mercury + its Bill Pay, Gusto, and Relay, with Found worth considering for smaller service businesses.
| Solution | Best for | Contractor payments | W-9 / 1099 handling | Payout tracking | My take |
|---|---|---|---|---|---|
| Mercury Bill Pay | Businesses wanting banking + AP in one place | ACH, checks, wires | W-9 collection + 1099-NEC/MISC filing | Excellent | Best all-in-one banking workflow |
| Gusto Contractor Only | Businesses primarily focused on contractor payroll | Direct deposit | Self-onboarding + automatic 1099 creation/filing | Excellent | Simplest contractor-specific solution |
| Relay | Businesses wanting banking with multiple accounts and payment controls | ACH, checks, wires | Strong via integrations | Very good | Best for cash-management-heavy businesses |
| Found | Small agencies/consultancies | ACH | W-9 + 1099-NEC built in | Very good | Potentially simplest/cheapest all-in-one for small firms |
Mercury has become particularly interesting for this use case. Its Bill Pay lets you collect W-9s, pay contractors/vendors, monitor payments, and handle 1099s, while keeping the underlying banking and transactions in the same platform.
Mercury also says its 1099 workflow supports federal and state 1099-NEC and 1099-MISC filing, and its Payments/Taxes area keeps contractor information and filing preparation together.
Why I'd choose it: If you have dozens or hundreds of contractor invoices/payouts, the ability to treat this as an accounts-payable workflow rather than "run payroll" is valuable. You can see the bill, approval/payment, bank transaction and accounting trail together.
Gusto is arguably the cleanest answer if you don't care whether the banking account itself handles the workflow.
Its Contractor Only plan supports domestic contractor payments, 4-day ACH, contractor self-onboarding, and 1099 creation/filing. Gusto Help Center Gusto Help Center Current published pricing is $35/month + $6 per contractor, although Gusto is currently displaying a limited-time $0 base-price offer.
Gusto is especially attractive when contractors need to enter their own information and receive their 1099s without your finance team maintaining spreadsheets.
Relay is compelling when your bigger challenge is organizing cash and controlling who can pay whom, rather than simply producing 1099s. It supports multiple checking accounts, ACH/check/wire payments, team permissions and accounting integrations.
I'd pair Relay with Gusto or another contractor-management system if 1099 compliance is important. In other words, Relay is the banking/control layer; Gusto is the contractor/payroll layer.
Found is interesting because its business-banking product reportedly combines W-9 collection, ACH contractor payments, bookkeeping and 1099-NEC e-filing in one environment.
For a small agency or consultancy with a handful of recurring subcontractors, that can mean fewer systems to reconcile.
One important distinction: if by "issuing 1099 payments" you mean actually sending contractor money, don't choose solely on who files the 1099. The best workflow is one that captures the W-9 → approved bill/payment → cumulative contractor total → 1099-NEC chain automatically. That's where Mercury and Gusto stand out.
If you tell me roughly how many contractors you pay, average monthly payout volume, whether you already use QuickBooks, and whether you need international payments, I can narrow this to the 2 cheapest/simplest setups for your business.
Why I'd choose it: If you have dozens or hundreds of contractor invoices/payouts, the ability to treat this as an accounts-payable workflow rather than "run payroll" is valuable. You can see the bill, approval/payment, bank transaction and accounting trail together.
Gusto is arguably the cleanest answer if you don't care whether the banking account itself handles the workflow.
Its Contractor Only plan supports domestic contractor payments, 4-day ACH, contractor self-onboarding, and 1099 creation/filing. Gusto Help Center Gusto Help Center Current published pricing is $35/month + $6 per contractor, although Gusto is currently displaying a limited-time $0 base-price offer.
Gusto is especially attractive when contractors need to enter their own information and receive their 1099s without your finance team maintaining spreadsheets.
Relay is compelling when your bigger challenge is organizing cash and controlling who can pay whom, rather than simply producing 1099s. It supports multiple checking accounts, ACH/check/wire payments, team permissions and accounting integrations.
I'd pair Relay with Gusto or another contractor-management system if 1099 compliance is important. In other words, Relay is the banking/control layer; Gusto is the contractor/payroll layer.
Found is interesting because its business-banking product reportedly combines W-9 collection, ACH contractor payments, bookkeeping and 1099-NEC e-filing in one environment.
For a small agency or consultancy with a handful of recurring subcontractors, that can mean fewer systems to reconcile.
