HoneyBook Payroll lets U.S.-based businesses pay 1099 contractors directly from their HoneyBook account. Payroll supports only contractor payments and helps you send payments in one place, keep payroll and bookkeeping organized, and prepare for tax season with built-in reports and forms. Contractors must complete onboarding before they can be paid, but you can add and invite them any time during setup.
Important: Payroll pricing and subscription details
HoneyBook Payroll is free for all members through April 1, 2026. If you continue using Payroll after that date, you’ll be automatically subscribed starting April 1, 2026, unless you cancel your Payroll subscription before then.
You receive advance notice before billing begins, and can cancel your HoneyBook Payroll subscription any time before April 1, 2026 to avoid being charged
From the navigation menu, if you select your company logo > Company settings > Membership, you can manage your subscription under “Paid add ons”
Contractor-only payroll pricing (starting April 1, 2026)
HoneyBook Payroll pricing is based on contractors you pay, not how many contractors you’ve listed. The monthly cost is:
$30 base fee, plus
$6 per contractor paid during the month
You’re only charged the $6 contractor fee for contractors you actually pay that month, no matter how many payments you send to each one
Also good to know:
If you pay a contractor multiple times in the same month, it’ll still count as one $6 fee
Contractors who you don’t pay during the month won’t be billed
Your monthly cost can change based on how many contractors you pay each month
Example
You have 10 contractors in HoneyBook Payroll
In March, you paid only 2 contractors
Your cost for that month would be:
$30 base fee, plus
$12 for contractors paid ($6 × 2 contractors)
Total monthly cost: $42
The other 8 contractors didn’t add to your cost because you didn’t pay them in March
How HoneyBook Payroll works
HoneyBook Payroll happens in 3 stages. You don’t need to complete everything at once, and some steps only apply when you’re ready to pay contractors.
Company setup (one time)
Contractor setup (as needed)
Payroll management (ongoing)
You can pause and return to setup any time.
Stage 1: Company setup (one time)
Start payroll setup
From the navigation menu, select Finance > Payroll
Select Set up payroll
Select Start next to each setup step as you complete it
Answer a few onboarding questions
Begin by answering a short set of questions about your business. This helps HoneyBook configure payroll correctly.
Add your work location
This step is required before you can continue setup
Enter the street address where your contractors physically work
This address is used for payroll and tax filings
Fill in your tax information
You must add your work location before completing your federal and state tax information in HoneyBook. This step ensures your payroll taxes and year-end forms including 1099s are filed accurately.
Your Federal Employer Identification Number (FEIN) is a 9-digit number issued by the IRS. It’s required in order to process payroll taxes correctly, file required tax forms, and issue 1099s to contractors at year-end. If you don’t already have a FEIN, you can apply for one for free on the IRS website. The online application typically takes just a few minutes to complete.
Add your Federal Employer Identification Number (FEIN)
Select Profile in your employer account
Select the pencil icon on the “Tax info” card
Locate the federal tax information, or state tax information, if applicable, then select Edit
Enter or update your FEIN or state account number in the provided field
Make sure you enter the correct FEIN or state account number. Incorrect information can result in payroll filing errors, penalties, or interest assessments when payroll taxes are submitted.
If you’re unsure of your FEIN or state account number, contact the IRS or your state tax agency directly to verify first
Select Save
Add and verify your company bank account
You must add your company bank account before it can be verified, which will be used for contractor payments and taxes. There are 2 ways you can verify your bank account:
Instantly using Plaid, or
Manually, which can take up to 2–3 business days
When verification is complete, you’ll receive an email titled “Your HoneyBook payroll is ready!”
Verify your bank account with Plaid (recommended)
The fastest way to verify your bank account for Payroll is by connecting through Plaid, our secure bank connection partner. To verify using Plaid:
When adding a new bank account, select Add with Plaid
Search for, then select your bank
A secure pop-up will appear. Enter your bank username and password.
If required, complete multi-factor authentication. For example, enter a verification code sent to your phone.
Once logged in, select the account you want to use for Payroll
After successful connection, your routing number and account numbers will automatically populate in the bank account card
Select Save at the bottom of the card
Using Plaid helps ensure your bank details are accurate and reduces delays in payroll processing.
Manually verify your bank account (micro-deposit verification)
In some cases, your bank account can’t be instantly verified and will require micro-deposit verification. This process typically takes up to 2–3 business days.
Micro-deposit verification is required by HoneyBook Payroll’s partner, Salsa, to confirm that you own the bank account entered during onboarding before funds can be withdrawn to pay contractors and tax authorities. In terms of how micro-deposit verification works, after entering your bank routing and account numbers:
Salsa initiates verification after your bank details are submitted
Within 2–3 business days, 3 transactions will appear in your bank account:
2 small deposits (credits under $1 each)
One withdrawal (debit) reversing the total of those 2 deposits
Once the deposits appear, enter the exact amounts of the 2 deposits
If the amounts match, your bank account will be verified and ready for payroll use
📣 Note
Deposits may take up to 3 business days to appear
You must enter the deposit amounts exactly as they appear
Payroll can’t run until the bank account is successfully verified
If you’re unable to complete micro-deposit verification, you can request manual review by providing photos of your government-issued ID and a voided check from the company bank account. These documents can be submitted to Salsa support for manual verification.
Add a company signatory
Add an owner or controller authorized to sign company documents. The company signatory must:
Own at least 25 percent of the company, or
Be authorized to act on the company’s behalf
This is often the business owner, president, or a corporate officer.
What is an RFI (request for information)?
During company setup or ongoing compliance review, you may receive a request for information (RFI) from HoneyBook. An RFI is a compliance request for additional documentation to verify:
Your business identity
Company ownership or signatory details
Tax information
Bank account ownership
This is a standard financial compliance process required to meet federal and banking regulations.
Why RFIs happen
RFIs may be triggered if:
Information entered doesn’t match IRS or public records
Additional verification is required for your FEIN
Bank account ownership needs confirmation
Ownership or controller details require clarification
What to expect
You’ll receive an email from Salsa or HoneyBook Payroll requesting documents
Payroll setup or payments may be paused until the request is completed
You’ll be given instructions on what documentation to upload. Common documents requested may include:
Government-issued ID
Business registration documents
EIN confirmation letter (CP-575)
Bank verification documents
📣 Note
Responding quickly helps prevent delays in payroll processing. Payroll can’t proceed until the RFI is resolved.
Stage 2: Contractor setup (as needed)
Get your team ready
You must add your work location before completing this step.
Invite contractors to enter their own information and be ready for payment
When you invite a contractor:
They receive an email titled “Set up your HoneyBook payroll account!”
They select Set up now and complete onboarding
Onboarding includes entering their legal name, tax information, and direct deposit details
When a contractor is paid, they receive an email confirming the payment
Each contractor must complete onboarding before you can submit payroll for them
📚 Tips
You can invite contractors even if you don’t plan to pay them right away
If you see a message prompting you to contact the Support team when running payroll, it usually means one or more contractors haven’t finished onboarding. Ask them to log in and complete setup before retrying.
Add or manage contractors
You can add, edit, or remove contractors any time.
Add a contractor
From the navigation menu, select Finance > Payroll
Select Workers list > Add worker
Enter the contractor’s legal name and email address
Choose one option:
Invite worker to enter their own info, or
I’ll enter the info myself if you already have their details
Select Add worker
Other contractor actions
From Finance > Payroll > Workers list, select the 
three-dot menu icon next to a contractor to:
Edit onboarding information
View associated projects
Assign the contractor to a project
Delete the contractor
Stage 3: Payroll management (ongoing)
Pay contractors
From the navigation menu, select Finance > Payroll
Select Send payment
If a payroll is in progress, you can select Resume or Delete
Select the contractors you want to pay > Next
Choose the payment date
Optional: Select + Add work period to show what the payment covers
Select Send payment
On the “Hours and earnings” page, you can select the
three-dot menu icon next to a staff member, then select:Edit pay
Edit deductions
Add memo
Select Next > Submit payroll, then confirm the remaining prompts
If needed, you can select Cancel payroll before submission
Cancel and reprocess a payroll run
If you need to make changes after submitting payroll for your contractors, you can cancel and resubmit the payroll before the daily processing cutoff.
From the navigation menu, select Finance > Payroll
Find the payroll run, then select View details
Select Cancel payroll and confirm the cancellation
After canceling:
Refresh the page. The payroll will reappear on your dashboard with the option to resume.
Select Resume, make edits on the “Hours and earnings” page, and select Submit payroll again
Important timing
Payroll can be canceled until 8:00 pm PT on the processing day
You must resubmit payroll before 8:00 pm PT to avoid payment delays
If the payroll has already begun processing, the Cancel payroll option will no longer appear. At that point, contact our Support team to request a payroll void:
Select the Question Mark icon on any HoneyBook page
Choose Message us > Send us a message
Enter “Talk to a person”
Depending on timing, some tax payments may have already been submitted and may not be refundable
Taxes and bookkeeping
Download payroll reports
From the navigation menu, select Reports
Select Download report
Choose a time frame, then scroll down to select Payroll
Select Download
You’ll receive a notification when the report is ready
Find your 1099 tax forms
From the navigation menu, select Finance > Tax Hub
Under “[year] tax documents,” select the year
Download your 1099-K or 1099-NEC forms
Update payroll settings
From Finance > Payroll > Settings, you can select and manage:
Business info
Addresses
Tax info
Pay groups
Bank accounts
Pay types
Check printing settings
Still have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!