Tech is supposed to remove friction. Not create it.
This week I needed to file 1099-NEC forms for independent contractors. Simple task. No W-2 employees. No payroll. Just contractor reporting.
Under Wave’s new structure, 1099 filing is locked behind full Payroll activation.
That means:
• Employer tax enrollment
• State unemployment rates
• Prior payroll history
• Workforce development tax setup
• Compliance screens meant for companies with employees
For a small LLC with zero payroll employees, that workflow creates unnecessary complexity and compliance anxiety. The system assumes payroll infrastructure even when payroll does not exist.
When platform design forces users into irrelevant regulatory pathways, support turns into friction. Execution slows down. Deadlines get tighter. Confidence drops.
This is a good example of how bundling features can unintentionally penalize small businesses.
I ended up using Track1099 and finished in minutes.
The broader lesson is not about one tool. It is about product design.
If tech gets in the way of support and execution, it is not serving the user. It is serving the architecture.
Small businesses do not need more systems. They need cleaner ones.
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More than 2 million small businesses and freelancers use Wave to send invoices and manage accounting and bookkeeping. Award-winning free software, accountant-approved. Plus services for credit card processing and payroll.