Kontrable: The Paychex alternative for contractor management without employee payroll complexity

Paychex Flex is a comprehensive payroll and HR platform built for small businesses with W-2 employees. They handle W-2 processing, automated tax administration, benefits management, HR compliance, and employment services. Paychex pricing varies by plan and employee count but starts around $99/month for small business payroll. Kontrable is built specifically for contractor management: tracking projects, managing contracts, handling invoices, coordinating direct payments. These are fundamentally different needs requiring different tools.

If you're working exclusively with independent contractors who file their own taxes and manage their own benefits, you don't need employee payroll infrastructure. You need contractor management.

Why Paychex isn't the right solution for contractors

Paychex is an employee payroll and HR platform. It's designed for businesses with W-2 employees: W-2 processing, payroll tax calculations, tax withholding and filing, benefits administration, employment compliance, HR services. Every feature Paychex offers assumes employment relationships.

If you use Paychex for contractors, you're paying for:

• W-2 processing (contractors file their own 1099s)
• Payroll tax calculations (contractors handle their own taxes)
• Tax withholding and filing (contractors file their own taxes)
• Benefits administration (contractors manage their own benefits)
• Employment compliance (contractors aren't employees)
• HR services (contractors aren't part of your HR structure)

Contractors don't need any of this. Paychex's entire value proposition is managing W-2 employees. Using it for contractors means paying for employee payroll infrastructure that doesn't apply to independent contractors.

What Kontrable actually solves for contractors

Contractor database: Store contractor information, payment details, business information, preferred payment methods in one organized place.

Contract and document management: Upload and organize contracts, statements of work, compliance documents. AI-assisted contract generation reviewed by your legal counsel. Track signatures and versions.

Project and milestone tracking: Create projects with specific milestones, deliverables, payment amounts. Track progress. Get alerts when milestones approach. Know what's pending.

Payment management with flexibility: Approve payments. Record transaction IDs and proofs from your chosen method (Wise, PayPal, Payoneer, or direct bank transfer). Track contractor confirmations. Complete audit trail.

Compliance organization: Centralize tax forms (W-9, W-8BEN), contractor status documentation, records for audits. Know what's on file.

Alerts and notifications: Automated reminders for deadlines, pending approvals, confirmations. No manual tracking.

Monthly reporting: Export contractor lists, payment records, status summaries for finance and operations.

This is what contractors actually need. Not W-2 processing. Not payroll tax calculations. Not benefits administration. Organization, tracking, and direct payment coordination.

Payment control—the fundamental difference

Paychex processes employee payroll through their system. You pay Paychex fees. Money flows through Paychex's payroll infrastructure.

Kontrable lets you choose how to pay each contractor:

Wise transfers: Low foreign exchange fees (0.35-1%), fast delivery (1-3 days), strong global coverage. Best for cost-efficient international payments.

PayPal: Instant wallet delivery, ubiquitous, higher fees. Best for contractors who prefer PayPal.

Payoneer: Mass payout support, popular in emerging markets, 2-5 day delivery. Best for large contractor bases.

Bank transfers (ACH/SEPA/wire): Direct to contractor bank accounts, universal, auditable, fully traceable. Best for formal relationships and large payments.

You maintain complete control. Your money doesn't flow through a payroll processor. No W-2 processing. No tax withholding. No payroll delays.

The Paychex overhead problem

If you use Paychex for contractors, you're paying for employee payroll complexity you don't need:

W-2 processing - Contractors file 1099s, not W-2s Payroll tax calculations - Contractors handle their own taxes Tax withholding and filing - Contractors file their own taxes Benefits administration - Contractors manage their own benefits Employment compliance - Contractors aren't employees HR services - Contractors aren't part of your HR structure

Every service Paychex offers assumes W-2 employment. Using it for contractors means paying for infrastructure that doesn't apply.

Kontrable eliminates this overhead: tools designed specifically for contractor relationships, nothing more.

Who should choose Kontrable

Small agencies, remote startups, and growing teams managing 3-25 contractors who:

• Have contractors who are properly classified as independent (1099)
• Contractors already have their own payment accounts
• Contractors handle their own taxes in their jurisdiction
• Need contractor management tools (not employee payroll)
• Want to pay contractors directly through Wise, PayPal, Payoneer, or bank transfers
• Need to avoid employee payroll infrastructure overhead
• Value simplicity and contractor-specific functionality
• Want direct control over contractor relationships

Key advantages of Kontrable as the Paychex alternative

Contractor-specific tools: Not employee payroll adapted for contractors. Built for contractor relationships from the ground up.

No W-2 processing: Paychex handles W-2 processing. Kontrable doesn't. Contractors don't need it.

No payroll tax calculation overhead: Paychex calculates payroll taxes. Contractors file their own.

No tax withholding requirements: Paychex handles tax withholding. Contractors handle their own.

Milestone-based payments: Track deliverables. Pay when work is complete. Tie payments to specific outcomes. Paychex doesn't offer this for contractor workflows.

Project tracking: Create projects with milestones, deadlines, deliverables. Know what's pending. Paychex is payroll-focused, not project-focused.

Direct payment control: Choose your payment method (Wise, PayPal, Payoneer, bank transfer) for each contractor. Paychex forces payment through their payroll system.

No employee infrastructure overhead: No W-2 processing, no payroll tax calculations, no tax withholding, no benefits administration, no HR services. Clean contractor management.

Transparent pricing: $49/month for up to 10 contractors. $99/month for up to 25. No complex pricing tiers.

Understanding the Paychex model

Paychex makes money by:

• Processing W-2 payroll
• Calculating and filing payroll taxes
• Managing tax withholding
• Administering benefits
• Providing HR services
• Charging based on employee count and complexity

Their business model is built on managing W-2 employees. They profit by handling employment relationships at scale.

If you use Paychex for contractors, you're paying this entire employee payroll fee structure for services designed for W-2 employees. You pay for W-2 processing contractors don't use. You pay for tax calculations contractors handle themselves. You pay for benefits administration contractors manage independently.

Kontrable reverses this: we built contractor management from the ground up. No W-2 processing. No payroll tax infrastructure. No employment complexity. Just straightforward contractor management.

What you get with Kontrable

Contractor-specific management: Every feature designed for contractor relationships, not adapted from payroll systems.

Milestone-based payments: Track deliverables. Pay when work is complete. Connect payments to outcomes.

Direct payment methods: Wise, PayPal, Payoneer, or bank transfers. You choose. Your money stays with you.

Complete audit trail: All approvals, payments, confirmations documented. Clean records for finance and compliance.

Contract automation: AI-assisted contract generation reviewed by your legal counsel. Professional contracts without expensive legal fees.

Payment flexibility: Choose the method that works best for each contractor based on location, preference, cost.

No payroll processing overhead: No W-2 calculations, no tax withholding, no payroll tax filing, no benefits administration.

Simple, focused tools: Everything designed for contractor management. Nothing built for W-2 employees.

The real difference

Paychex: Employee payroll system with W-2 processing, tax withholding, benefits administration.

Kontrable: Contractor management system with contracts, projects, milestones, direct payments.

If you have contractors, Kontrable is the alternative built for your actual needs.

What contractors actually cost vs what Paychex assumes

What contractors need:

• Organization and tracking
• Contract management
• Project milestone tracking
• Payment coordination
• Tax form collection (W-9, W-8BEN)
• Payment history and audit trail

What Paychex provides:

• W-2 processing
• Payroll tax calculations
• Tax withholding and filing
• Benefits administration
• HR services
• Employment compliance

These are completely different. Contractors need the first list. Paychex provides the second list (designed for W-2 employees).

Kontrable provides exactly what contractors need, nothing more.

Why Kontrable exists

We kept using Paychex for contractors and paying for W-2 processing infrastructure we didn't use. W-2 processing? Contractors file 1099s. Tax withholding? Contractors file their own taxes. Benefits administration? Contractors manage their own benefits. HR services? Contractors aren't employees.

We needed a platform built for contractor relationships. Not employee payroll adapted for contractors. Not W-2 infrastructure we don't need. Just clean contractor management.

So we built Kontrable: contractor-specific tools, direct payment control, no W-2 processing, no payroll tax infrastructure, transparent pricing.

Employee payroll vs contractor management

This is the fundamental difference:

Paychex: Built for W-2 employees. Handles W-2 processing, payroll taxes, tax withholding, benefits, employment compliance.

Kontrable: Built for 1099 contractors. Handles contracts, projects, milestones, direct payments.

For contractor management, Kontrable is purpose-built. Paychex is optimized for W-2 employees.

Get started

If you're managing independent contractors and need contractor management without W-2 processing complexity, payroll tax infrastructure, and employee payroll overhead—Kontrable is the alternative.

Contractor-specific tools. Direct control. Professional management. No employee payroll overhead.

Start organizing your contractor relationships today.