Dora Launches Payroll Payment System for Businesses With 1099 Workers

Dora Financial has launched a payroll payment system for businesses with independent contractors and gig workers.

The new DoraPay enables more efficient management of 1099 payroll and the offering of employer sponsored benefits, the credit union service organization (CUSO) said in a Friday (April 14) press release.

“DoraPay is a simple yet comprehensive solution that allows small business owners to invest in their workers’ financial well-being and manage payroll with ease,” Dora Managing Director Kristi Kenworthy said in the release. “With its easy [application programming interface (API)] integration, businesses can be up and running in no time.”

PYMNTS research has found that employers that take on independent contractors and gig workers may not always be prepared for the complexity of ensuring there are no delays or unexpected problems related to timely payments.

That can make it difficult for them to recruit and maintain these workers, as unpredictable payments are one of the leading reasons independent workers switch employers, according to the “Expanding Payments Choice Playbook,” a PYMNTS and Onbe collaboration.

The report found that especially among in-demand contractors and consultants, the ability to be selective about the jobs they accept makes them unlikely to maintain relationships with employers that do not align with their needs for predictable and on-demand pay.

The new DoraPay product lets business owners integrate the payroll payment system into popular accounting software, use traditional reporting capabilities and specify the pay frequency, according to the press release.

For workers being paid via DoraPay, wages are loaded onto a fee-free Visa debit card, they get immediate access to their pay and there is no need for paper paychecks, the release said.

Workers also get access to other features of the Dora mobile banking app, including a free checking account, access to 30,000 ATMs, free bill pay, free personalized financial coaching and other financial wellness benefits, per the release.

“We understand the unique challenges that small business owners face,” Kenworthy said in the release. “Prioritizing financial wellness in the workplace will help employers attract and retain top talent. DoraPay provides immense benefits to both the business and the workforce and will help business owners save time and money so they can focus on what they do best — running their businesses.”