Pay Contractors Without Running Them Through Withholding
Contractors are paid gross on a dedicated payment ledger - no FIT/FICA - and roll up into 1099-NEC reporting and your general ledger at year-end.
A separate path for nonemployees
Contractors don’t have taxes withheld, so paying them through the employee tax engine would be wrong. Fintra records contractor payments on their own ledger - gross amounts, no withholding - while keeping them in the same system so year-end reporting and accounting stay unified.
- Gross payments, no FIT/FICA/state withholding
- Dedicated contractor payment ledger, separate from employee YTD
- Contractor-payments report for any period
- 1099-NEC summary with the $600 threshold applied per recipient
- GL posting alongside employee wage expense
Employee vs contractor
Year-end contractor reporting
What Fintra produces at year-end
- Per-recipient totals for the year
- The $600 filing-threshold flag per recipient
- 1099-NEC summary report
- Contractor spend posted to accounting
Inside Fintra
Contractor payments post through the same GL export path as payroll, so nonemployee spend lands in your books next to wage expense - one accounting story for all labor.
Frequently asked questions
Are contractors taxed through payroll?
No. Contractors are paid gross with no withholding on a separate payment ledger, so they never touch employee wage-base caps or W-2 boxes.
How do contractor payments reach year-end reporting?
They roll up into a contractor-payments report and a 1099-NEC summary that applies the $600 per-recipient filing threshold automatically.
Do contractor payments hit accounting?
Yes - they flow through the same GL export path as payroll, posting nonemployee spend alongside employee wage expense.
Does keeping them separate help with classification?
Yes. The distinct ledger means employees never land on a 1099 and contractors never accrue employee taxes, keeping worker classification clean.
Stay in the loop
One practical finance briefing a week - new guides, checklists, and benchmarks.
Contractors, paid and reported right
Run contractor payments on a clean 1099 path, separate from employee payroll.
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