The cheapest way to pay wedding subcontractors is a free ACH bank transfer. ACH costs nothing at most US banks and nothing on platforms built for it — compared to Venmo Business (1.9% + $0.10), PayPal (2.99% + $0.49), or accepting credit cards (2.9%+). On a $2,000 payment to a second shooter, that 3% difference is $60 per transaction. Multiply it across a busy season and the savings are real.
This guide walks through every common payment method, the W-9 and 1099-NEC paperwork you're required to handle, and the fastest way to keep it all organized in one place.
Before choosing a payment method, you need to know your legal relationship with the person you're paying. The IRS uses a behavioral control, financial control, and relationship test to distinguish employees from independent contractors. Misclassifying an employee as a contractor creates payroll tax liability and IRS penalties.
For most wedding subcontractors — second shooters, assistant planners, DJs, florists, officiants — the relationship is genuinely independent: they set their own hours, work for multiple clients, and provide their own equipment. If that describes your arrangement, you're paying an independent contractor and the 1099-NEC rules below apply. When in doubt, consult a tax professional or review the IRS guidance on worker classification.
The W-9 (Request for Taxpayer Identification Number and Certification) is the document that tells you whether a contractor is a sole proprietor, LLC, or corporation, and gives you their Social Security Number or Employer Identification Number (EIN). You need it to file a 1099-NEC at year-end.
Best practice: collect a signed W-9 before you send any payment. There is no IRS minimum dollar threshold for W-9 collection — it's required regardless of the amount. If you pay someone without a valid W-9, you may be required to withhold 24% backup withholding from future payments. (IRS Forms and Taxes for Independent Contractors, updated April 2026)
Important 2026 update: The One Big Beautiful Bill Act (OBBBA), signed into law in 2025, raised the federal 1099-NEC filing threshold from $600 to $2,000 for payments made on or after January 1, 2026. (TS CPA Tax Advisors, June 2026, EarnDrift, June 2026)
What this means for you:
Important note: This is general operational information, not tax or legal advice. Requirements vary by state, contractor type, and business structure. Consult a qualified tax professional for guidance specific to your situation.
| Scenario | Federal 1099-NEC Required? |
|---|---|
| Pay second shooter $1,500 total in 2026 | No (below $2,000 threshold) |
| Pay DJ $2,500 total in 2026 | |
| Pay florist $700 total in 2026, based in California | Potentially yes — CA state threshold is $600 |
| Contractor provided an EIN (corporation/S-Corp) | Generally no — confirm with tax professional |
| Payment via third-party processor (PayPal, Venmo) | Processor handles 1099-K separately; consult your CPA |
The 1099-NEC filing deadline for 2026 payments is January 31, 2027 — both to the contractor and to the IRS. (1099online.com, April 2026)
The 3% fee headline in this guide's title represents what card-based platforms typically charge the business receiving payment. But you're not receiving — you're paying out. The question for subcontractor payments is: how much does it cost the planner to send money, and how fast does it arrive?
| Payment Method | Fee to Send | Fee to Receive (Contractor Sees) | Typical Speed | Best For |
|---|---|---|---|---|
| Free ACH (bank-to-bank) | $0 | $0 | 1–3 business days | Any amount; best for regulars |
| Zelle (business account) | $0 (most banks) | $0 | Minutes | Quick, smaller payments |
| Venmo (personal to personal) | $0 from bank/debit | $0 (personal) | Minutes | Informal; use with caution |
| Venmo Business Profile | N/A | 1.9% + $0.10 | Minutes | If contractor has business profile |
| PayPal Friends & Family | $0 from bank | $0 | 1–3 days | Risky — no buyer/seller protection |
| PayPal Goods & Services | $0 | 2.99% + $0.49 | 1–3 days | Has protection; contractor absorbs fee |
| Credit card (any platform) | 2.9%–3.5% charged to you or contractor | Varies | Varies | Avoid for contractor payouts |
| Check | $0 | $0 | Days + mail time | Paper trail; slow |
Key insight: ACH and Zelle are the zero-fee options. The difference between free ACH and PayPal Goods & Services on a $3,000 payment is $90 — enough to cover a venue booking fee.
Standard ACH (Automated Clearing House) transfers between US bank accounts cost nothing at most major banks. According to NerdWallet's 2025 analysis, Bank of America, Chase, Capital One, Wells Fargo, Ally, and most other major institutions charge $0 for standard external ACH transfers. The transfer typically settles in 1–3 business days.
The only cost to watch: same-day ACH — most banks charge $1–$5 per transaction for expedited settlement. Standard ACH is almost universally free.
Zelle charges no transaction fees. According to Zelle's own FAQ, some banks may set their own fees, but most don't. The main constraint is limits: Bank of America business accounts cap sends at roughly $15,000/day and $60,000/month after 60 days of enrollment (NerdWallet Zelle for Business, April 2026). For a $2,500 payment to a photographer assistant, Zelle works perfectly. For paying multiple vendors on the same day, watch your bank's daily limits.
Note: Zelle does not protect against disputes the way PayPal Goods & Services does. There's no "oops I sent to the wrong person" recovery.
Venmo is widely used for informal payments and works fine between personal accounts (free from bank/debit). The complication:
For predictability and zero cost, Zelle or direct ACH beats Venmo for subcontractor payouts.
PayPal's standard rate for receiving business payments is 2.99% + $0.49 on Goods & Services transfers, and 3.49% + $0.49 on standard checkout (PayPal Business Fees, May 2026). Friends & Family is free from a bank account, but using it for business payments circumvents PayPal's protections and violates their terms of service if payment is for work performed.
For occasional contractors who specifically request PayPal, Friends & Family (sent from bank balance) is technically free — but it carries no dispute protection and creates record-keeping ambiguity.
Use this at the start of every new contractor relationship:
If you're already using a business platform to invoice clients and manage contracts, running contractor payouts through the same system keeps every record in one place.
Maroo's contractor payout feature handles the full workflow: free ACH transfers to contractors, W-9 collection and storage, 1099-NEC preparation, e-filing with the IRS, and mailing paper copies to contractors — all from within the platform. (Maroo products/pay page, Maroo pricing page, accessed June 2026)
| Starter (Free) | Business ($50/mo) | Pro (Custom) | |
|---|---|---|---|
| Contractor payouts (ACH) | 3/mo free, then $1/payout | 10/mo free, then $1/payout | Unlimited |
| B2B ACH fee | Free | Free | Free |
| 1099-NEC e-file + mail | $5/form | $3/form | Included unlimited |
| W-9 storage | Included | Included | Included |
For a solo planner paying 2–3 subcontractors a few times per season, the free Starter tier covers most needs. A planner consistently paying 10+ contractor invoices per month would likely find the Business plan more economical than the $1/payout overage fees.
Disclaimer on Maroo pricing: All figures above were pulled directly from maroo.us/pricing as of June 2026. Pricing may change — always verify current rates before signing up. For features not listed here, see maroo.us.
Assume a planner pays $15,000 total across 10 contractor payments (average $1,500 each):
| Method | Transaction Fees | Annual Total Fees | Notes |
|---|---|---|---|
| Free ACH (direct bank) | $0 per transfer | $0 | Must manage W-9/1099 separately |
| Zelle (business) | $0 | $0 | Bank limits apply; no dispute resolution |
| Venmo (personal) | $0 from bank | $0 | Informal; limited paper trail |
| Venmo Business Profile (contractor receives) | 1.9% + $0.10 × 10 | ~$286 | Fee absorbed by contractor |
| PayPal Goods & Services | 2.99% + $0.49 × 10 | ~$454 | Fee absorbed by contractor |
| Credit card to any platform | ~3.5% | ~$525 | You bear this cost |
| Maroo (free ACH payouts, Starter) | $0 ACH + $5 × 2 forms | $10 (1099 filing only) | Integrated W-9 storage + filing |
The operational cost of ACH is effectively zero. The real value of a platform like Maroo is that it keeps W-9s, payment records, and 1099 filing in one system — removing the need for a separate accountant or third-party filing service at year-end.
If you're paying subcontractors out of a spreadsheet and chasing W-9s over email, it's worth looking at a system that handles the whole workflow. Maroo's free Starter plan includes contractor payouts, W-9 storage, and 1099-NEC filing — no separate software needed.
The simplest zero-fee method is a free ACH bank transfer — send it directly from your business checking account. Zelle works for quick same-day payments if both parties' banks support it. For either method, collect a signed W-9 first, track the payment amount and date, and issue a 1099-NEC at year-end if you pay the contractor $2,000 or more in 2026 (the new federal threshold under the OBBBA). Platforms like Maroo can manage the W-9, payment, and 1099-NEC filing in one workflow.
For 2026 payments: you must file a federal 1099-NEC if you pay an independent contractor $2,000 or more during the year. (The old $600 threshold applied to payments made through December 31, 2025.) Several states — including California, Massachusetts, Oregon, Vermont, New Jersey, and Rhode Island — have lower thresholds that still apply. Payments to corporations generally don't require a 1099-NEC. Always consult a tax professional for your specific situation, as requirements depend on contractor classification and state.
Free ACH bank transfer is the least expensive option — $0 at virtually every major US bank for standard (1–3 business day) transfers. Zelle is also free and faster (usually minutes) but subject to per-bank sending limits. Both methods avoid the 1.9%–3.5% fees on Venmo Business, PayPal Goods & Services, and credit card payments. On a $2,500 payment, the difference between free ACH and PayPal is roughly $75.
Download IRS Form W-9 and send it to the contractor via email before the first payment. Ask them to fill in their legal name, address, taxpayer identification number (SSN or EIN), and sign it. Store the completed form securely — you'll need it to prepare the 1099-NEC. Some business platforms (including Maroo) let you request and store W-9s directly within the platform, which makes year-end filing faster.
Possibly, yes. PayPal and Venmo issue their own 1099-K forms for payments processed through their platforms, but that's a separate reporting obligation. Your 1099-NEC obligation is based on whether you paid a contractor $2,000+ for services performed (federally, for 2026). The existence of a 1099-K from a payment processor does not eliminate your own 1099-NEC filing requirement. This area has nuance — consult a CPA before assuming the platform's reporting satisfies your obligation.
Zelle works well for payments that fit within your bank's daily and monthly sending limits. Bank of America business accounts, for example, cap sends at $15,000 per day and $60,000 per month after 60 days of enrollment (NerdWallet, April 2026). For most wedding planners paying individual subcontractors, Zelle handles the amounts fine. The limitation: Zelle doesn't store W-9s or generate 1099s — you'll need a separate system for tax compliance.
