From University of Wisconsin–Madison, and she lives in the Chicago area with her family. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Use this guide to understand the key differences between QuickBooks Desktop vs Online. Discover key features, pros, and cons to choose the right edition for your business. One of the biggest perks of using QuickBooks Online is its ability to streamline payment processes.

• We are an approved IRS e-file provider, and we’ll transmit the form securely and electronically for you.
• The software does so by eliminating the need for paperwork and leveraging the power of automation.
• If you’re paying it right away, you can create an Expense or write a Check.
• While making use of this type of employment can give your business access to specialized skills at a fraction of the cost, it also comes with special tax regulations to adhere to.
• To help businesses understand the difference between contractors and employees, the Internal Revenue Service (IRS) has established the standards outlined below.

However, this also means that the owner has no legal or financial protections and is personally liable for business debts. Based on the relationship terms, the designer is likely an employee despite the independent contractor agreement. The website is integral to the company's core function, an online store. The company provides benefits and envisions a long-term relationship. Employers must weigh these factors together to separate employees from contractors.

Review employment tax obligations

Costing $6 per worker monthly, it’s also an affordable option, especially if you only pay up to two contractors a month. However, for bigger teams, I recommend QuickBooks Payroll, which charges $15 monthly for up to 20 contractors (plus $2 per additional worker). QuickBooks Desktop Assisted Payroll is not available quickbooks self employed login in Indiana or Wyoming. It is included in the base subscription for Enterprise Diamond; $1 per employee per pay period. If you file taxes in more than one state, each additional state is currently $12/month. Active subscription, Internet access and Federal Employer Identification Number (FEIN) required.

For Xero’s Early plan ($13), the number of invoices that users can send each month is capped at 20, but for all other Xero plans, users can send unlimited invoices. In our evaluation, Deel earned an overall rating of 3.76 out of 5, with high marks (4 and up) in HR features, reporting, and our expert review. It lost points because it has limited integration options and lacks new hire reporting for contractors. Deel’s contractor plan is also more expensive than the other payroll services for contractors we reviewed. Overall, Square Payroll earned a score of 4.47 out of 5 in our evaluation.

How to choose the right QuickBooks accounting product

These features could be better suited for handyman businesses than contractors. Lastly, if you’re still debating between Xero vs QuickBooks for contractor needs, Method works with both software options, making it one less obstacle between you and your perfect solution. Construction businesses with complex accounting needs and those who want to build detailed reports. You can also take advantage of the Contractor Edition reports feature, which includes 19 additional custom-built reports for contractors. QBD Enterprise’s advanced reporting provides deep insights into your business.