So if there's a player who is solid, but not worth the contract, I'd like to waive him in the hopes that another team will pick him (and his contract) up.

But when I try to waive him, I get the message that "This player still had option years. There is no need to waive him".

The sim seems to think I'm waiving him as a means to take him off the 40 or demote him, which is absolutely not the truth. If I'm paying him, I'll be playing him since he's still useful. I'd just like to send him through waivers for contract reasons, not for assignment reasons.

Guessing this is before the trade deadline. You want him to remain active or are you OK with him being in limbo through the process? If it is the latter, remove him from the 40 and, if he clears, add him back. Waivers is only really meant to do the two things you don't want to do.

Complete text from the GM Basics: "Attempt to have the player clear waivers for future decisions (demotion or trade). In order to demote a player out of options, he must clear waivers. In order to remove a player from the 40-man roster, he must clear waivers. In order to trade a player after the trade deadline, he must clear waivers. Prior to the trade deadline, a player that is claimed cannot be pulled back. After the trade deadline, he may be pulled back."

Yeah, that's what I've done in the past (DFA), but I'd prefer a way to waive them without DFAing them so that I could keep them on the roster.

Pretty sure you can't do that before the trade deadline.