If your business uses 1099 contractors, you know how difficult it can be to manage and track payments and expenses. There are applications and software solutions which can make 1099 contractor tracking easier and more efficient, but every single one forces you to adapt to strange new workflows and confusing terminology. What if you could build your own 1099 tracking system without having to write a line of code?
Introducing TrackVia – an intuitive yet powerful low-code platform that can be used to do anything from tracking 1099s, managing inventory, to standardizing business process. By utilizing low-code technology such as drag-and-drop app building, we can create a comprehensive tracking system for our employees and stakeholders to access. TrackVia works on the computer and on mobile devices, making it perfect for monitoring 1099 contractors on the go.
Setting Up a 1099 Tracking System
To start, we’ll create a new TrackVia app store all the relevant 1099 contractor data. Some of the necessary data points include:
• Contractor Name
• SSN / EIN
• Type of Contract
• Current Billing Rate
• Date of Last Payment
• Date of Last Invoice
• Payment Method
Fortunately, TrackVia makes this process a breeze. Without writing a line of code, we can create a new table and dashboard to showcase all of our 1099 contractors. Building all of this in TrackVia only takes minutes, and can be completed by anyone with little technical knowledge. This makes it incredibly easy to get a comprehensive view of our contractors, payments and status of engagements.
Expanding on our system, we can also build another module to track our expenses, and include key details such as:
• Which contractor we are paying
• The amount of the Payment
• The date we paid the contractor
• The purpose of the payment
• Methods were used to make the payment
By combining the data from both modules, we are able to build a powerful 1099 tracking system for our business. By constructing our own 1099 tracking system, we have complete control over the user experience, eliminating any potential confusion and frustration. We can also integrate the TrackVia app with thousands of other applications via Workato to take our automation to the next level.
Tips for tracking 1099 contractors
Whether you’ve decided to build your own 1099 tracking system or use an off-the-shelf system, there are still a few tips and tricks that you may want to consider.
- Implement an automated payment system, such as ACH payments or Wire Transfer, to ensure that payments are made on time. This will help you avoid paying late fees and risking poor relationships with contractors. With TrackVia and Microservices, you can send payments via ACH or check (third-party payment service required).
- Establish payment milestones, and base payments on achieving each milestone or completing a particular portion of work. In TrackVia, consider creating kanban boards and graphs to easily visualize which projects your 1099 contractors are working on.
- Keep records of all payments to your contractors, and track any taxes that may have been withheld from these payments. In TrackVia, you have complete control over which data points you collect, how you aggregate data, and how you prepare final reports.
Using a solid system and procedures will help you stay organized and compliant with regulations when it comes to tracking 1099 contractor expenses. In many cases, implementing a 1099 contractor tracking system can also reduce professional service expenses, such as bookkeeping and CPA fees, as much of the 1099 process is automated.
Strategies for Avoiding Common Pitfalls and Compliance Issues
When it comes to paying 1099 contractors and staying compliant, it’s important that you know the ins and outs of the labor and tax laws in your state. Knowing the rules can help you:
- Properly classify workers and decide who should actually be classified as 1099 employees.
- Comply with applicable laws, such as the Payment Card Industry Data Security Standard (PCI DSS).
- File taxes accurately and on time.
- Avoid penalties for late payments, late filings, and overpaying for services.
Each of these areas is tricky and can lead to costly mistakes and legal consequences. Luckily, TrackVia has specific features you can utilize to repeatedly enforce your checks, audits, and compliance standards. Step-by-step guided flows, automatic overdue notifications, and custom business rules help you stay on top of your 1099 compliance program. As always, we recommend that you consult with trusted tax and legal advisors to help you stay compliant. If you have an in-house compliance expert, consider embracing citizen development with TrackVia to further empower them to build and manage your 1099 contractor tracking system.
Using Technology to Make 1099 Contractor Tracking Easier and More Efficient
With TrackVia, you can quickly and effectively set up and manage a 1099 contractor tracking system. A few benefits include:
- A customizable low-code platform allows you to develop your own business apps and tailor them to your needs.
- Automated email and workflow notifications help you stay on top of payments and other tasks.
- Live dashboards enable you to effortlessly monitor the status of contracts, payments, and other business data.
- Easily export data for your reporting and compliance needs.
- Use integrations via third-party payment processors and Workato for automatic payment processing.
- Access your data on any device with a mobile-friendly design.
TrackVia helps you effectively monitor 1099 contractors, streamline the payment process, and ensure that tax and compliance requirements are being met. With our user-friendly interface and powerful integration capabilities, it’s no secret why TrackVia is the preferred choice for custom business applications.
Want to start streamlining the tracking of your 1099 Contractors today? Start a free trial with TrackVia and see what you can create!
Or request a demo and let one of our solution consultants show you what can be done!
