19 April 2018
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Payroll Process: 6 Easy Ways to Pay Employees

Payroll Process 6 Easy Ways to Pay Employees

Invoices and paychecks stuck in limbo is a nightmare for both parties. The payroll process isn’t complicated, but it seems to create many complications.

 

Failing to pay employees or get paid like one due to accounting errors, will disrupt work and morale. One may relinquish this critical operation, but…

 

Never Skimp on Payroll Processing: Here’s Why

 

The Fair Labor Standards Act (FLSA) sets minimum wage and protects workers from abuse.

This includes withholding due payments.

 

Businesses improperly handling the payroll process can see themselves in court. Or, dealt fines on a Federal and state-level. Also, some states may block the company from operations if it’s frequently delinquent.

 

Suddenly, the cheapest option doesn’t look too hot. Especially if it makes the payroll process difficult and disruptive.

 

Cutting Checks: 6 Ways to do the Payroll Process

 

A thing to note is the importance of a paper trail. Your likelihood of an IRS audit is low, but it’s not worth risking the business because of lost paperwork.

 

What are easy ways you can handle payroll?

 

#1. Direct Deposit with Payroll Software

 

You can set up direct deposit using payroll software. This software automatically handles withholdings and process deposits to employee’s bank accounts.

 

Popular payroll software brands include:

 

  • QuickBooks
  • Quicken
  • Patriot

 

High-end payroll software comes bundled with extra features for the Human Resources department. Or, physical hardware for time management.

 

#2. Cut a Personal Check

 

Paying employees with a personal check isn’t ideal but possible. This can cover payroll when you’re in a pinch. Just remember to account for the appropriate payroll tax and withholdings.

 

Additionally, you could use a pay check stubs maker. This tool creates a pay stub detailing withholdings for both party’s bookkeeping. The stub is then paired with the personal check.

 

#3. Outsource the Payroll

 

Businesses can choose to outsource to qualified third-party providers. These individuals or teams use online payroll services. Then, checks, deposits, or pay cards are distributed to employee’s address.

 

Popular payroll services include:

 

  • SurePayroll
  • Intuit Payroll
  • OnPay

 

The payroll service, for a fee, creates peace-of-mind and lowers the time commitment & hassle of doing it in-house.

 

#4. Peer-to-Peer

 

Several peer-to-peer payment processors are available:

 

  • PayPal
  • Venmo
  • Zelle
  • Square Cash

 

These P2P services are ideal for businesses using contractors. Or, freelance professionals such as hiring bloggers or day laborers. The processor creates a digital paper trail and places the tax withholding on them.

 

#5. Payroll Cards

 

Businesses may pay employees by depositing wages to payroll cards. This eliminates costs from cutting and cashing checks for both parties.

 

Services providing cards include:

 

  • Flexwage
  • Visa Payroll Card
  • Paychex

 

The cards have gained popularity for those unable to set up direct deposit.

 

#6. Crypto Payroll

 

Blockchain adoption has delivered easy-to-use wallets for sending & receiving cryptocurrency. New services like Bitwage and Etch lets businesses pay employees using digital currency.

 

The crypto payroll work like P2P services. Crypto exchanges reduce transaction fees and create a public ledger for accountability. However, volatility of the crypto markets hasn’t made this form of payroll mainstream (yet).

 

In Accounting? Share Your Payroll Process

 

Join the conversation and help others understand payroll. Leave a comment with your suggestions in the comment area below.

 

Cutting Checks: 6 Ways to do the Payroll Process

Gaurav Jain
Article by Gaurav Jain
Hey There! My name is Gaurav Jain, a full time affiliate marketer since 2007. The reason for starting eMoneyIndeed.Com blog is to help you Save & Make Money Online. I write about Blogging, Online Marketing, Webhosting, SEO, Affiliate Marketing, Startups, Social Media, Email Marketing and more. Hope you enjoy the posts on eMoneyIndeed.com

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