A payroll payment doesn’t have to follow the traditional style of pay. Find out here four ways you might consider paying employees.
More than one-third of small businesses spend over $500 per month of payroll services.
It’s important to invest in your payroll payment services to make sure your workers receive their payment on time.
This is the best day of the month for workers. However, it’s up to employers to decide how they receive their salary.
But, business owners don’t just have to follow the traditional payroll payment method. There are many ways to pay your workers.
Check out our four ways to consider how to pay employees. Let’s go!
1. Paycheck
Even though the paycheck is not as popular as it once was, it remains quite common to pay employees.
Checks can be with either with handwritten or printed payroll checks. Workers can then submit the paycheck to the bank or at the cash machine.
Many workers like to receive the physical check in their hands at the end of each month. This gives them a sense of achievement.
Unfortunately, there is always the risk that the paycheck can get lost or stolen. You have to weight up the pros and cons.
Besides, the method can be quite time-consuming too. You need to produce a paycheck for each employee, which can take a lot of time and effort.
Remember, you still required to hand your workers a paystub with the paycheck. You can create this yourself with https://www.paystubcreator.net/form-w2-creator.
2. Direct Deposit
Direct deposit is by far the most common method of payment. Around 82 percent of workers in the U.S. receive direct deposit.
This is extremely cheap and fast for employees and employers. You only need the bank information to deposit the salary of your workers.
You can also review your payments online which allows you to stay organized with your outgoings.
3. Payroll Cards
Payroll cards are a relatively new form of payment. This is especially helpful for workers without banks.
You pay an employee onto a prepaid card which can then be used to make purchases by your workers.
There are some costs involved in setting up prepaid cards. However, there are very useful if your workers don’t have a fixed bank account.
4. Old-Fashioned Cash
Remember cash?
You can still pay your workers with cash. However, it is becoming increasingly unusual among employers.
This can be difficult to keep records of your payments. You also need to be especially careful that you’re calculating your accounts correctly.
Paying your workers in cash can raise suspicions from the IRS (Internal Revenue Service). However, if you work in an industry with a lot of cash, it can be the best way to pay your workers.
How to Organize Your Payroll Payment
It’s that time of the month again!
It’s time to pay your workers their hard-earned salary. You need to decide how you’re going to handle your payroll payment.
There are advantages and disadvantages to each approach. However, you need to determine which is best for your business.
Do you want more business advice? Check out our blog post on quirky business ideas for you.
