Best method to pay employees

Best method to pay employees

Best Payroll Processing Practices

Have you ever wondered which is the best method to pay employees? Well, it’s a typical Thursday afternoon at the office.

You’ve reached the last leg of the day, and the weekend is just around the corner. One. More. Day.

Glancing through the window of your corner office, you can’t help but notice that there’s a youthful skip in your employees’ steps.

Taking one look at the calendar hanging above your desk, you discover why.

Today is everyone’s favorite day: Payday.

If you weren’t so exhausted from processing the payroll, you might be jumping for joy as well. You need to explore some options.

It’s time to review and implement the best method to pay employees.

Payroll processing that fits your needs

Finding the best payroll solution for your company can be a confusing task.

There are an infinite number of options to choose from and issues to address:

Should you pay your employees through direct deposit? Pay cards? What if there’s a mistake made on someone’s paycheck? What if someone doesn’t even get a paycheck?

Before you panic and start making decisions willy-nilly, you should know that there are a variety of true and tested method to pay your employees.

In fact, there’s probably more than one method to you employees that can fit your needs.

What’s more, while some methods of paying employees might work well for some companies, it is important to note that those methods might not fit your particular business.

Your budget, the size of your company, and the number of employees that work for you are some of the determining factors in finding the best method to pay employees for your business.

Knowing the difference between payment options can help you uncover the best method to pay employees

Finding the right payment procedure for your employees starts with understanding how each payroll processing method works.

Refer to this basic breakdown when trying to find the best payroll processing practice for your business.

Best method to pay employees: Pay cards

In recent years, Pay Cards (also referred to as Payroll Cards) have gained popularity with many employers due to its ease and cost effectiveness. Every pay period employee wages are simply loaded on the card, making them easily accessible. You can set up these cards with a payroll card provider, such as Visa. check with your payroll provider if this option is available.​

Best method to pay employees: Direct deposit

In recent years, Pay Cards (also referred to as Payroll Cards) have gained popularity with many employers due to its ease and cost effectiveness. Every pay period employee wages are simply loaded on the card, making them easily accessible. You can set up these cards with a payroll card provider, such as Visa. check with your payroll provider if this option is available.

Best method to pay employees: Manual checks

The more traditional route is the to pay employees using a paper check that they then deposit to the bank. However, you can also use manual checks to make corrections in the event of mistakes made in the payroll process.​

For instance, AccuPay systems provides comprehensive  low cost full service payroll to small businesses, giving business owners more wiggle room to select which payroll options work best for them.

However, each system comes with it's own set of benefits and pitfalls.

Pros and cons of the methods to pay employees

The good news is that there are many pros to each system.

Pay Cards are generally less expensive than issuing checks, making them a cost effective alternative for those who cant, or won’t, use direct deposit.

But keep in mind that payroll cards come with drawbacks as well. One of the most problematic features of the cards is that they are often loaded with fees.

And those fees add up.

Unless you totally despise your employees, (don’t get any ideas) you don’t want a payroll system that might actually cost them a good chunk of their paycheck.

That’s why it’s important to find cards that have low fees, and to give your employees a heads up about any potential charges.

Another thing to remember is that you want to go with a solution that provides the most convenience for both your employees and yourself at a fair price.

Many companies find use deposit as their method of paying employees because it is convenient and totally safe to use.

It saves employees a trip to the bank on a weekly, or bi-weekly, basis and it also bypasses the problem of lost or stolen checks. Additionally, direct deposit saves employers money that would otherwise be spent on printing checks.

Costs and other considerations​

The more traditional method to pay employees using paper checks that they then deposit to the bank. However, you can also use manual checks to make corrections in the event of mistakes made in the payroll process. Your selected method to pay your employees is also dependent on the kind of payroll system you use.

Conducting your payroll in-house might mean that your choices are slightly more limited compared to outsourcing.

More importantly, find a solution that works well for your employees. Just because something is cheaper or more convenient for you doesn’t mean it’s a two-way street.

Keep in mind that not all employees will be particularly thrilled if you decide to make pay cards a mandatory option. You should also be aware that changing state laws might make it impossible to enforce such a practice.

Remember, the best method to pay your employees is dependent on your circumstances, which includes the circumstances of your employees.

Conclusion

When trying to find the method to pay your employees that work best for your business, remember that you have options.

If processing your payroll in-house isn’t doing the trick, consider outsourcing.

Companies like AccuPay Systems give you the flexibility to find methods that work best for you.

Maybe the majority of your employees don’t have a bank account and so pay cards work great.

Perhaps the best method to pay your employees is through direct deposit.

You might even find that the best option is to roll these payroll processing methods into one solution.

From our experience, we have found that offering direct deposit as the primary method to pay employees and then allowing employees to opt into a payroll card program works the best.

So go forth and find the best payroll practices that will keep the thrill of payday alive.

About the Author

I live in the intersection of technology and entrepreneurship. I am a technology enthusiast but my passion is helping small businesses succeed, including mine. When I am not working, you will find me goofing with my wife and kids. When not with family and/or friends, you will find me doing some home improvement projects.

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