An owner establishes a business to earn income while employees work to do the same. In this case, it is an employer’s responsibility to pay what an employee has worked for in the company. It is only fair and just to pay them with what they deserve. Meanwhile, a business firm can use different payment methods.
Paying the members is not as easy as it seems. As the owner, you have to ensure that they get the right amount. You may have someone to do the payroll process for you, such as an accountant. However, before you get into releasing their wages, have you decided which mode of payment you will use?
If you keep reading, you can find out the various options your business may choose to pay for your members’ work.
Modes of Payment
The owner can choose the way to provide payment for their members. The method should be both convenient to the business and members as well. Given this point, here are a few payment methods that you can choose from for your business employees:
Paycheck
Business owners can select this option as a payment method. They can either write or print the payroll checks. However, doing the first one will be time-consuming for them. On the side of the employees, they might lose their paychecks, or someone can steal them as well. It is best to review these pros and cons before deciding to use this option.
Direct Deposit
It is a newer version of payment methods. It involves the transfer of funds from the firm’s bank account to the employees’ accounts. Meanwhile, some members favor this payment method since they will no longer worry about misplacing it. Aside from that, you can even pay them wherever you are, at any time. You also have to check the pros and cons of this option because of the time frame used to process the wage.
Payroll Cards
This option is the most common method that business firms use to pay their members. It involves a prepaid card wherein employers will load the wages during a scheduled payment date. Meanwhile, members can use this as a debit card, withdraw cash through an ATM, or with the help of a bank teller.
Cash
Another common way to pay employees is in cash. However, this option might become suspicious to them concerning tax deductions. Furthermore, using this method is not in favor of your payroll records, making it hard to keep track of it. You also have to consider these points and balance their effects on your record-keeping.
Mobile Wallet
This method is also becoming famous now that online jobs are more in demand. Employees only need to prepare their electronic accounts that connect to their phones. In this case, employers send their wages in these accounts. Meanwhile, employees can also use these accounts to pay bills and do online shopping.
Given these payment methods, ensure that you pay your members on time. This way, there will be no hassle for both of you. The payment day is one of the days that every member looks forward to from their work. For this reason, business owners have to be responsible for paying them.
Other Ways to Pay Your Employees
Some employers have health premium contributions. An employee has the chance to save tons of money through health insurance plans. In this case, you have to review how much the company can shoulder to pay for each employee.
Meanwhile, you can also provide your members with virtual prepaid cards as vouchers or gift cards. You can put your company’s logos, serving as one of your permanent advertisements. Aside from that, you can also use these cards for incentive programs that can boost your members to work harder for a better outcome for the company.
Furthermore, you can also provide your employees with discounts on the products and services that your firm offers. Aside from that, they can also enjoy corporate discounts on other company’s products and services. Your employees can also save money with the help of these discounts.
The Bottom Line
You have plenty of methods to choose from to pay your members. Even giving incentives are also counted here. In this case, you have to select the option that suits your business and your members. Both sides must benefit from the method you will choose for the most convenient transaction.
Given these points, select the option that will not cause you headaches in the long run. You have to be mindful of your business responsibilities and your employees’ specific needs.
