Product
April 28, 2025

Zeal vs Payment Processors for 1099 Payments

Alyssa Cuda

Senior Content Marketing Manager

Zeal vs Payment Processors for 1099 Payments

Most payment platforms are designed for one thing: helping businesses accept money from customers. Some have bolted on worker payouts as an afterthought—but paying workers isn’t the same as processing transactions.

These platforms often lack critical features for contractor payments: compliance automation, onboarding workflows, flexible payout options, and garnishment handling. That leaves businesses to plug the gaps with spreadsheets, patchwork systems, and manual work.

Zeal, on the other hand, is built from the ground up for high-volume 1099 and W-2 worker payments. We help staffing firms and gig platforms eliminate compliance risks, reduce manual work, and create a better experience for every worker.

Built for Worker Payments vs. Built for Payments 

Most legacy payment platforms began by solving one problem: helping businesses accept payments. Over time, they added new features—subscriptions, sales tax, even business incorporation. But they weren’t built to handle the unique demands of worker pay at scale.

Zeal is purpose-built for this exact need. We combine payments, onboarding, tax compliance, and automation in one system—eliminating the need for manual processes and disconnected tools.

Automating Worker Onboarding: Zeal vs. Payment Processors

With Payment Processors: Onboarding workers is manual and disconnected. Businesses must:

  • Set up banking details for payments
  • Store and track compliance documents separately
  • Ensure the correct classification and tax filing

This process can lead to errors, delays, and compliance risks, especially for businesses paying large numbers of contractors.

With Zeal: Zeal fully automates worker onboarding, eliminating manual paperwork and reducing administrative burdens. Zeal provides:

  • Automated Tax Form Collection – Workers complete W-9s digitally during onboarding.
  • Banking & Direct Deposit Setup – Payments are set up instantly with worker self-service.
  • Digital Signature Collection – Workers can sign contracts and policy documents online.
  • White-Labeled Worker Portals – Contractors access all pay documents in one place.

Using Zeal, businesses can onboard workers in minutes, reducing errors and ensuring full compliance, something payment processors simply don't offer.

Garnishment Management

Handling garnishments for 1099 contractor payments is a complex but essential responsibility. Businesses making payments to independent contractors may be legally required to process deductions for child support, tax levies, creditor garnishments, or student loans. Requirements vary state to state. Failing to properly manage these withholdings can result in financial penalties, legal issues, and operational inefficiencies.

Most payment processors are not built to handle garnishments for independent contractors, leaving businesses to track, calculate, and remit payments manually. Without automation, managing these deductions can become an administrative burden, increasing the risk of errors and non-compliance.

1099 Garnishment Compliance: Zeal Handles It 

Payment processors do not support automatic garnishment deductions for 1099 payments. This means businesses must manually process and remit garnishments to the appropriate agencies, adding risk and inefficiency to their operations. Since garnishments often have strict deadlines and complex requirements, relying on a manual process can lead to missed payments and potential legal consequences.

Zeal, however, provides built-in garnishment management for 1099 payments. Our system automates the entire process, ensuring that:

  • Deductions are calculated accurately based on garnishment orders.
  • Payments are sent to the correct agencies on time.
  • Compliance requirements are met without additional manual work.

Why This Matters for High-Volume 1099 Payments

For businesses managing large contractor workforces, manually processing garnishments at scale is not sustainable. Zeal automates garnishment deductions for independent contractor payments, reducing administrative overhead and ensuring compliance with federal and state regulations. With Zeal, businesses can focus on scaling their contractor network without worrying about garnishment compliance challenges.

White-Labeled Worker App: Effortless with Zeal 

Unlike payment processors, Zeal allows businesses to offer a fully customized, white-labeled worker app, giving contractors a seamless way to manage their earnings, access payment history, and handle compliance paperwork—all under your brand.

What a White-Labeled App means for staffing agencies:

  • Branded Worker Experience – Provide a seamless, branded experience for workers instead of sending them to a third-party payment platform.
  • Self-Service Pay – Workers can view pay stubs,track their payments, edit personal information, and more without needing manual intervention.
  • Enhanced Worker Retention & Trust – When workers see your company’s branding when accessing their pay, it fosters a sense of reliability and professionalism. A consistent, branded experience builds long-term loyalty, improves trust, and reduces turnover.

Automations and Integrations 

While many payment processors offer APIs for payments, they lack robust worker pay-specific capabilities. Businesses need additional tools to complete tax compliance, contractor onboarding, and worker self-service features.

With Zeal: Zeal provides a configurable automation platform and fully customizable API that integrates pay, onboarding, and compliance. Zeal’s platform allows businesses to:

  • Automate the onboarding experience and workflows
  • Integrate compliance tracking across multiple states
  • White-label portals and payment tracking for workers
  • Sync directly with existing ATS, CRM, accounting, and timekeeping systems to create a seamless staffing workflow.

Built-In Integrations for End-to-End Workforce Management 

Zeal integrates onboarding, payments, and billing with other systems commonly used by companies who use 1099 independent contractors allowing for streamlined workflows. Zeal integrates with:

  • Applicant Tracking Systems (ATS) & CRM – Sync with hiring platforms to move candidates seamlessly from recruitment to onboarding.
  • Accounting Software – Connect pay data directly to QuickBooks, Xero, and other accounting platforms for real-time financial tracking.
  • Timekeeping & Scheduling – Integrate with time-tracking systems to automate wage calculations and pay adjustments.

Funding Options: 

Managing cash flow effectively is crucial for businesses making high-volume 1099 payments. Some platforms require you to pre-fund an account before making worker payments. That ties up capital and slows down operations—especially for businesses with variable payout schedules.This means:

  • Businesses must deposit money upfront before payments can be made.
  • If the balance is low or runs out, payments cannot be processed until additional funds are added.
  • This can strain cash flow, especially for companies with unpredictable payout schedules or high transaction volumes.

Zeal allows businesses to fund 1099 payments via ACH without requiring a prefunded balance. This provides:

  • Real-time ACH processing directly from your business bank account.
  • No need to tie up cash in a prefunded wallet.
  • Faster payment cycles with direct account withdrawals, improving financial flexibility.

Support: A Partner That’s Invested in Your Success

Managing worker payments and compliance isn’t just a side function—it’s a core part of your business. You need a partner who treats it that way.

With big payment processors, you’re just another customer using a product that was built for payments, not worker pay. Payroll and compliance are afterthoughts in their ecosystem, and support is an additional cost—often from agents who aren’t even specialized in workforce payments.

For example, Stripe typically begins their annual letter citing their payments transaction volume from their payments products (over $1.4T in 2024). They often cite having hundreds of thousands of customers, and promote their adoption by very large companies in these letters. Stripe has multiple tiers of paid support plans.

With Zeal, you’re an important customer using a product that is purely focused on worker payments and compliance. Our team consists of experts in staffing, gig work, and high-volume 1099 pay—people who understand the complexities of payroll, tax reporting, and compliance challenges unique to your industry.

  • Hands-on, dedicated support from specialists in worker pay.
  • No extra fees for getting the help you need.
  • Built-in compliance expertise to guide you through tax laws, onboarding, and classification issues.

Your payroll solution should be more than just a payment processor—it should be a strategic partner that helps your business scale efficiently and stay compliant.

Worker Payment Types: More Options with Zeal

One of the most critical aspects of a quality worker experience is determining how and when workers get paid. Payout options with payment processors are typically limited to ACH and instant debit transfers. Zeal, on the other hand, offers multiple payment options, providing more flexibility for workers and businesses.

 Worker Payment Types with Zeal:

  • Standard ACH Transfers – Reliable direct deposit payments within 1-2 business days.
  • Same-Day ACH – Faster payments for contractors who need immediate access to funds.
  • Instant Pay – Real-time payouts to workers' debit cards.
  • Paycards – Great for unbanked workers or those who prefer prepaid card options..

If you're managing large-scale contractor payments, flexibility in how workers receive their pay is essential. Zeal’s multiple payment options give businesses the tools they need to provide faster payments, more options, and a top-tier worker experience.

Looking for a payment solution that truly fits your business? Let’s talk. Contact us today to see how Zeal can help you scale faster while staying compliant. 

Zeal is a financial technology company, not an FDIC insured depository institution. Banking services provided by Bangor Savings Bank, Member FDIC. FDIC insurance coverage protects against the failure of an FDIC insured depository institution. Pass-through FDIC insurance coverage is subject to certain conditions.


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