Moving into another decade means more businesses have their eyes on how to advance into their future. The typical ways of hiring and paying, struggling over paperwork, and keeping up with dozens to hundreds of monetary transfers shouldn't take up so much time, especially when there are so many newer systems making it easier to get this done with less stress. Companies are pushing to hire globally instead of just settling for whatever talent is in their area. The worst thing standing in the way of payments being effortless is having to figure out how to pay each employee.
Regardless of how you pay, nobody wants to go to each employee one after the other and handle the stresses of taxes and paperwork. Payroll mistakes can take down businesses faster than anything these days.
A mass payment system solves almost any problem these global payrolls bring to the front. Here are some examples, just in case you’re still unsure:
Sending out checks is so last century
On top of being a drain on employees to have to make trips to the bank or use apps built to cash checks, paper checks cost companies money. It costs businesses up to $2 to process paper checks than send direct deposit according to a 2017 study. Direct deposits only cost your company around 35 cents per employee. That’s a $1.65 you could save per employee if you’re using a mass payment system.
That’s money wasted that could be going back into your business. Although it may seem nice to have everything down on paper, it consumes resources and time. Mass payment systems not only cover the stress of how employees and vendors get paid; they’ll save you money in the long term.
Mass payment means mass taxes
Payroll taxes are in a world of their own. If you’re late on personal taxes, or even property taxes, the IRS may not notice. With payroll taxes, any mistake or misfiling gets found almost immediately. The IRS can and will punish any mistakes and penalize the business owner from 2–10% of your total payroll. That amount of money can kill a business with ease. If a professional isn’t working on your payments, you put your future at risk.
Schedule your payments
Late payments are known to cause strikes, convince employees to quit, and can dirty a company’s public image. There are laws in the USA that state an employee’s right to being paid on time, and law firms that actively advertise towards employees who get paid late.
If you’re paying vendors, you could lose essential connections that keep your company alive by just being late. If you fail to pay your vendors on time, you could be looking at your goods getting delivered after a deadline, or not delivered at all. Mass payment solutions offer scheduling that can help take the stress off your shoulders.
Borderline paperwork free
Back to the issues with the IRS and taxes, companies waste countless hours working on their payroll. Research has found that 40% of companies lose 80 or more hours working on payroll every year. That’s two full-time weeks of work that could be spent more productively.
Having yourself, or an inexperienced employee, handle your taxes is like lighting dynamite and expecting it not to explode. There are too many people, and no room for error, for any company to try and handle payroll for itself.
Speed and reliability
If you hire a mass payment system, you’re setting yourself up for success. Not only do companies offer to do the bookwork, taxes, and check balancing for you, but they also thoroughly understand the legalities that come with it. The pressure will be off your shoulders, and your company will be able to work instead of constantly worrying about payroll. What kind of company you own isn’t factored into it – the same mass payment system for multiple industries can be the right call.
Individuality on how payees get paid
There are dozens of ways to get paid these days. From ACH (automated clearing house) payments that go directly to the payee’s account to PayPal which even offers debit cards. If you have to run payroll and want to compete in the new century, employees are going to ask for payments that suit them. Even vendors may request that they get paid through sites like PayPal – over 18 million merchants prefer them. It would be best if you didn’t have to send out payments in a dozen different ways to keep everyone paid on time. Mass payment systems offer a fix that takes care of it all at once. You’ll get to breathe easy knowing you did your job correctly.
Your company is unique to you in every way, from the employees to the products or services you put out. There’s no reason to also have to specialize in payroll taxes, or spreadsheets, to be able to run your company successfully. Mass payment systems offer you, your employees and vendors a way to ensure timely payments with proper handling of taxes. Instead of stressing about the money you’re putting out, you can focus on the profit you’ll be bringing in.
Keep reading
Learn how customer due diligence (CDD) verifies onboarded customers to keep your product secure.
Learn about the new Developer Portal and how it can help developers implement identity verification.
Learn how to streamline identity verification with KYC software while maintaining a seamless user experience.
