Best 1099 Software for Small Business in 2025

For small businesses, managing 1099 forms can be a daunting task, but with the best 1099 software for small business, it doesn’t have to be. In 2025, several best 1099 software for small business solutions are available to simplify the process of contractor payments, ensure compliance with the IRS, and ultimately save valuable time.

Whether you’re a small business owner handling just a few contractors or managing payments for a larger team, the right best 1099 software for small business can streamline your filing process and ensure you stay on top of deadlines. In this guide, we’ll take a closer look at the best 1099 software for small business in 2025.

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Why You Need the Best 1099 Software for Small Businesses

Filing 1099 forms is a requirement for businesses that pay independent contractors, freelancers, or vendors.

These forms help the IRS track income and ensure contractors are properly taxed. Failure to file 1099 forms accurately or on time can lead to penalties, making reliable 1099 software essential for small businesses.

By choosing the best 1099 software, small businesses can:

Ensure Timely Filing: File your 1099 forms on time to avoid penalties.
Improve Accuracy: Automate form generation to reduce human error.
Stay Compliant: Keep up with changing IRS regulations and avoid costly mistakes.
Save Time: Automate the filing process to focus more on growing your business.

Top 7 Best 1099 Software for Small Businesses in 2025

Below are some of the best 1099 software solutions in 2025, designed to make 1099 filing easier, more accurate, and more efficient for small businesses.

QuickBooks Online: Best Overall for Small Businesses

Best for: Small businesses that want an all-in-one accounting and tax solution.

QuickBooks Online is a robust, cloud-based accounting platform that simplifies 1099 filing for small businesses. It tracks contractor payments automatically, generates accurate 1099 forms, and offers seamless integration with your existing accounting tools. QuickBooks ensures that tax reporting is a breeze and your business remains compliant.

Key Features:

Automated contractor and payment tracking.
Direct e-filing to the IRS.
Seamless integration with QuickBooks payroll.

Pricing: Starting at $25/month with additional charges for 1099 e-filing.

Tax1099: Best for Accountants

Best for: Accountants managing multiple clients or large volumes of 1099 forms.

Best 1099 software for small business, Tax1099 is a top choice for accountants handling multiple clients. It offers bulk filing, real-time compliance checks, and integrates with popular accounting platforms like QuickBooks and Xero. Tax1099’s bulk filing capabilities make it ideal for high-volume filers.

Key Features:

Bulk filing for large volumes of 1099 forms.
API integration with accounting software.
Real-time TIN matching to avoid IRS rejections.

Pricing: Starts at $2.90 per form.

Gusto: Best for Payroll Integration

Best for: Small businesses using Gusto for payroll.

Gusto is well-known for its payroll processing features, and it extends this functionality to 1099 filing. It automates the process of generating and filing 1099 forms, ensuring IRS compliance and accuracy. If you’re already using Gusto for payroll, it’s a natural fit for managing contractor payments with the best 1099 software for small business.

Key Features:

Automates 1099 form generation from payroll data.
Contractor self-service portal.
IRS compliance alerts.

Pricing: Starts at $40/month plus $6 per contractor.

1099 Pro: Best for High-Volume Filers

Best for: Businesses and accountants who handle large numbers of contractors or clients.

Best 1099 software for small business, 1099 Pro is designed to accommodate high-volume 1099 filing. It offers both cloud-based and on-premise options, making it suitable for businesses of all sizes. The software includes robust automation features and advanced reporting tools to help you process forms quickly and accurately.

Key Features:

Bulk processing for multiple 1099 forms.
SOC 2-compliant data security.
Advanced reporting features.

Pricing: Starting at $79/year for the basic plan.

eFile4Biz: Best for Affordability

Best for: Small to mid-sized businesses needing a budget-friendly solution.

Best 1099 software for small business, eFile4Biz offers an affordable, web-based platform for filing 1099 forms. It integrates with QuickBooks and other accounting tools, allowing for easy import of contractor payment data. For small businesses looking for a simple, cost-effective filing solution, eFile4Biz is an excellent option.

Key Features:

Bulk form upload via Excel or QuickBooks.
IRS-approved e-filing and print/mail services.
Pay-per-form pricing structure.

Pricing: Starts at $3.50 per form.

Wave: Best Free Option for Small Businesses

Best for: Small businesses with limited budgets.

Best 1099 software for small business, Wave is a free accounting software tool that includes basic 1099 management features. While it doesn’t offer all the advanced features of premium software, it’s an excellent option for small businesses just starting out. Wave allows for easy tracking and exporting of contractor payments and 1099 generation.

Key Features:

Free 1099 generation and tracking.
Easy export options for IRS filing.
No subscription fees for basic features.

Pricing: Free, with optional paid features for advanced accounting tools.

Track1099: Best for Cloud-Based Automation

Best for: Accountants who prefer cloud-based automation.

Best 1099 software for small business, Track1099 is a cloud-based 1099 software solution that offers significant automation capabilities. It integrates with accounting tools like QuickBooks and Xero, automating much of the 1099 filing process, including direct delivery of forms to contractors.

Key Features:

E-file and direct delivery of forms to contractors.
Syncs with QuickBooks and Xero.
Bulk file uploads via CSV.

Pricing: Starts at $2.99 per form.

How to Choose the Right 1099 Software for Your Small Business

Selecting the best 1099 software for small business depends on several factors, including the size of your business, the volume of forms you need to file, and your existing accounting tools. Here are some key points to consider:

Ease of Use

Look for software that’s simple to navigate, especially if you’re new to filing 1099 forms. User-friendly interfaces and clear instructions can make the process much less stressful.

Integration with Other Tools

Ensure that the best 1099 software for small business integrates seamlessly with the accounting tools you already use, like QuickBooks, Xero, or Sage. This can help eliminate manual data entry and reduce the chances of errors.

Bulk Filing Capabilities

If you have a large number of contractors to file for, bulk filing is a critical feature. Many of the best 1099 software options offer bulk processing to streamline the process.

Compliance Features

Make sure the software includes features like real-time TIN (Taxpayer Identification Number) matching to reduce IRS rejections and help ensure compliance.

Conclusion

Managing 1099 forms doesn’t have to be an overwhelming task for small businesses in 2025. With the best 1099 software for small business, you can streamline the process, ensure timely filing, and stay compliant with IRS regulations while saving valuable time.

Whether you’re handling a few contractors or managing a larger team, there’s a 1099 software solution to fit your needs.

From comprehensive platforms like QuickBooks Online to budget-friendly options like Wave, each tool offers unique features that can help simplify your filing process.

Consider your business size, the volume of forms you need to file, and how the software integrates with your current accounting system when making your choice.

FAQs

What is 1099 software?

1099 software helps small businesses automate the generation and filing of 1099 forms for contractors, freelancers, and vendors, ensuring IRS compliance.

Why do small businesses need 1099 software?

It ensures timely and accurate filing of 1099 forms, reducing errors and the risk of IRS penalties, and helps businesses stay compliant with tax regulations.

How does QuickBooks Online help with 1099 filing?

QuickBooks Online tracks contractor payments, automatically generates 1099 forms, and offers seamless integration with your accounting tools to simplify the filing process.

Is Tax1099 suitable for high-volume filers?

Yes, Tax1099 is ideal for accountants or businesses with many contractors, offering bulk filing, real-time compliance checks, and integrations with popular accounting platforms.

Can Gusto be used for 1099 filing?

Yes, Gusto automates the generation and filing of 1099 forms, ensuring IRS compliance, and is especially convenient for businesses already using Gusto for payroll.

What are the benefits of using 1099 Pro?

1099 Pro is designed for high-volume filers, offering bulk processing, advanced reporting features, and a choice between cloud-based or on-premise options.

How does eFile4Biz support small businesses?

eFile4Biz offers an affordable solution for 1099 filing, providing bulk upload options and IRS-approved e-filing, making it a budget-friendly option for small to mid-sized businesses.