The Bureau of Labor Statistics reports that as of 2018, independent contractors made up almost 7% of the workforce. These workers play a big role in the U.S. economy, and they can be found in all types of industries and businesses. Today, many company leaders are enhancing efficiency by investing in virtual debit cards for 1099 employees.
Businesses may choose to hire 1099 employees for a variety of reasons. In addition to helping employers overcome payment, deduction, and benefit limitations, it creates more flexibility for workers in terms of scheduling and taxes. While the gig economy offers both short-term and long-term solutions for workers, there’s one issue that employers continue to face, and that is reimbursement.
Reimbursement for Independent Contractors and Gig Workers
Payment and reimbursement can be more complex for gig workers than it is for other types of workers. Just like regular employees, independent contractors make company purchases and incur business-related expenses. Without a way to track those expenses, how can you manage your contractors’ spending and ensure that they receive the proper reimbursement?
Tracking pay, expenses, and other work-related issues is different between contractors and traditional employees, especially for businesses that work with remote or traveling contractors. You could benefit from a streamlined solution that allows you to pay employees quicker and improve your management of expenses. That’s where reloadable debit cards for independent contractors come in.
Virtual Cards for 1099 Contractors From Hydrogen
The ever-evolving solution to contractor reimbursement concerns is simple. Start issuing reloadable cards to your workers, and these financial issues will likely become a thing of the past.
The reason these virtual cards are so useful is that they put cash directly into employees’ hands, while giving company leaders the freedom to maintain awareness and control of spending. Workers can use the cards the same way that they might use a debit or credit card, except they’ll be limited to authorized company purchases. With these cards, you can set budgets for workers and keep track of the money they spend on trips, materials, and other business-related items.
Virtual card solutions and products from Hydrogen help make deductions, payments, reimbursements, and money-saving easier for business leaders. For instance, workers will no longer have to worry about paying out-of-pocket for hefty business expenses or waiting weeks to receive reimbursements. Meanwhile, businesses can set rules and spending limits for employees, reducing overhead expenses in the long run.
At Hydrogen, we provide an efficient, highly advanced virtual card solution using innovative API technology and smart analysis strategies. Reloadable cards for 1099 contractors are easy to use and administer, and they’ll give your employees instant access to the money they need for company spending. As a result, you can save hours of unnecessary work and avoid additional business costs.
Partner With Us Today
Virtual cards for independent contractors can create a smoother experience for employers and employees alike. Start building your virtual card solution with Hydrogen today.