ZenPayroll has launched a contractor payments service that includes direct deposit and tax reporting.

The new contractor option extends ZenPayroll's cloud-based payroll service that enables employers to pay staff, as well as manage payroll taxes and compliance.

The contractor payments service costs $25 per payer, plus $4 per contractor or employee per month. For companies with more than 10 contractors or part-time employees, the rate drops to $2 for each additional payee. Payments to independent contractors are also reported on IRS Form 1099, the mandated tax form for contractors receiving more than $600 in wages from an employer over the course of a year.

"The nature of work is changing given the decline of lifetime employment. People often have several jobs at one time and many companies employ contractors as a part of running their business," said ZenPayroll CEO Joshua Reeves in a release. "Payroll should encompass everyone in the workforce—whether it's a traditional employee or part-time contractor."

A number of companies offer technology to allow payments to contractors. WePay and Square enable payments to mostly small contractors. And companies such as Tipalti and Dwolla offer mass payments, which can include payments to freelance or part-time staff by an employer.

Other companies, such as CoreFirst and Brink's Co. offer payroll cards in an attempt to automate payroll.

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