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How to Set Up a Secure Way to Pay Your Employees
For many businesses, contract employees and the services provided by vendors are the lifeblood of the organization. As such, making sure that they are compensated fairly for their hard work is of the utmost importance. There are a number of ways that you can pay your them, but which is the best for your business? Let’s take a look at how you can establish online payroll services to make sure that everyone is paid in a safe, secure, and timely manner.
What Types of Payment Options Do I Have to Choose From?
The first step to take when figuring out how to pay your employees is to understand what options you have at your disposal. Here are a few of the payment methods that you may consider using when compensating vendors and contractors.
Paying with cash: While paying with cash isn’t generally suggested, especially for larger companies, it does offer certain benefits like quick access to payments for your employees, a lack of fees that are often expected when using online payroll services and payment platforms, and it is easier to change if you need to adjust the payment amount later on. Just don’t be surprised if the IRS decides to audit you for a previous tax year!
Paying by check: Paper checks are still a great payment option that ensures employees without bank accounts can still access their funds. It also eliminates the fees that you may need to pay when sending other forms of payments and can be quite easy to disburse when working with a handful of employees. That being said, this is still a payment method that can be flagged by the IRS, and you have to stay on top of your checks to ensure when it clears (as well as keep track of any checks that have been lost or stolen).
Offering direct deposit: The most common payment method, especially for those relying on online payroll services, is direct deposit. It makes it easy for you to send money and is especially convenient for your employees as the money shows up in their account within a matter of days. However, you can expect greater fees and any employees who don’t have access to a bank account won’t be able to receive their funds.
Providing your employees with a payroll card: A payroll card is essentially a prepaid debit card that allows you to load your employee’s card with funds each payroll period. For those without access to banking, this is a major benefit. However, many employers are prevented from offering this payment method due to state law. Make sure that you do your research if you are thinking about making this option available to your employees.
Each payment method comes with its advantages and disadvantages, so it’s important that you look into the benefits and consequences of each before settling on one main type of payment method for your business.
Which Payment Options Are the Most Secure?
As you can see, you have multiple payment options to choose from, ranging from more traditional payment methods to the types supported by the online payroll services that we rely on today.
Given that we live in a digital world, the most secure payment option is the one that relies on technology to get the job done; this is primarily direct deposit. However, even the most popular method of payment comes with disadvantages. Contract employees and vendors still have to wait a few days to see their funds and direct deposits can be more costly than cash or check.
Fortunately, there is a solution that can overcome these obstacles for those in need of help with their online payroll services. If you’re looking to find the best, most secure way to pay your employees and vendors, you’ll want to turn to Paynote.
Getting Started With Paynote
Paynote by SeamlessChex is an eCheck payment solution that provides businesses with the best qualities of paying by check in a digital deposit format. All you have to do to get started is to sign up, enter the name, email, and payment amount of the recipient, and send the request. They will then enter their own banking information (no need for them to have a Paynote account), and the money will be deposited within two business days!
Paynote streamlines your online payroll services and makes it easier than ever to help get everyone paid.
Ready to pay your contractors and vendors in a seamless and secure way? Whether you’re just figuring out how to pay your employees or you’re looking to switch to a more efficient method and scrap your old payment process and online payroll services, sign up and send your first eCheck today or contact us to learn more about Paynote!