How to Pay Employees: Types of Payment You Can Offer

How do you pay your employees? With checks? Direct deposit? Other? There are a number of ways to pay employees, especially as money continues moving into the digital sphere. If you want to know how to pay employees, take a look at your options.

And boy, do you have options. You can cut employees a check, deposit money directly into an account, or hand them an envelope filled with cash. 

So, which options are the best ones for your business? Read on to compare the payment methods for employees. 

How to pay employees 

Knowing which employee payment method to use is just part of the fun. Before you get to the distributing wages step of the payroll process, you need to calculate employees’ gross wages and withhold taxes and other deductions. 

However, this article won’t get into the nitty-gritty details of the payroll process. Instead, it’ll focus on different ways to pay employees, including check, direct deposit, pay cards, cash, and mobile wallet. 

Find out how to pay your employees by looking at the different types of methods and seeing which one makes the most sense for your business. Pay attention to costs and your employer responsibilities, too. 

Paycheck

Paying employees with paychecks is one of the most popular payment methods. You may consider paying your employees by either writing or printing payroll checks. 

Unlike payment methods involving electronic funds transfers (e.g., direct deposit), employees do not need to have bank accounts to receive their wages via check. Instead, employees can use a check-cashing service (for a fee) to receive their wages. 

Before deciding to offer this payment method, consider the pros and cons. For example, some employees may prefer the privacy of receiving paychecks because they don’t need to share banking information. But, paychecks can get lost or stolen.  

Time and cost of using paychecks 

Handwriting a paycheck can be time-consuming for employers. Writing out checks each pay period takes time, especially if you have a number of employees. 

If you decide to print your employees’ paychecks, you can save considerable time from writing them all out. But if something goes wrong with your printer (or if you run out of ink), you may have to resort to handwriting checks. 

Plan to spend money on blank checks if you handwrite checks. And if you print paychecks, you need check stock, ink, and a printer. You might even need a special MICR printer with magnetic ink. 

Direct deposit

Direct deposit is the most common payment method, with 82% of U.S. workers using it. One of the biggest benefits of direct deposit is convenience. 

With direct deposit, there’s no need to physically hand an employee their wages. So, if you or an employee is on vacation, direct deposit recipients will still receive their wages on time. 

Once you receive an employee’s banking information, you can directly deposit their wages each pay period through an electronic funds transfer (EFT). 

Before deciding to use direct deposit, understand the time frame for processing. If you do not run payroll by a certain day, your employees won’t receive their wages when expected unless you expedite the process or use another payment method.  

Time and cost of direct deposit 

Direct deposit is a relatively quick process, unless you miss your time frame for processing. Generally, the most time-consuming part is setting up direct deposit. 

Keep in mind that direct deposit comes with some fees you need to know about. You may need to pay set-up fees, monthly fees, and a small fee per pay period. Set-up fees could range from $50-$149, and transaction fees might be $1.50 per transaction. 

However, you may not be responsible for footing the direct deposit bill. If you have online payroll software, direct deposit might be incorporated at no added cost. Check to see if your payroll software provider offers direct deposit at no additional cost.  

Payroll cards

A pay card (or payroll card) is a prepaid card that employers can use to pay employees. Each payday, the card is loaded with the employee’s wages for that pay period. 

Employees can use the pay card like a debit card, or they can withdraw wages through an ATM or bank cashier. Unlike direct deposit, employees do not need a bank account to receive their wages. 

Time and cost of pay cards 

Although using pay cards can save you time, there are a number of fees associated with this method. 

In addition to set-up costs, employees may incur fees. Depending on your state, you may be required to pay these fees for your employees. 

Cash

Paying employees cash is another type of payment you have at your disposal. But if you decide to pay employees in cash, you must be extra careful when it comes to keeping records. 

Cash payments to employees might make the IRS suspicious that you aren’t taking out the correct tax amounts.

Paying employees in cash makes it more difficult for you to keep track of payroll records. Unlike other payment methods, there isn’t an automatic audit trail (e.g., bank records) when you pay in cash. 

Time and cost of paying cash 

Paying employees in cash does not require immediate fees like with direct deposit, payroll cards, and paychecks. 

But, paying in cash puts you at a higher risk for an IRS audit, which costs significant time and money. 

Mobile wallet

Another payment option increasing in popularity is the use of mobile wallets (e.g., Venmo or Apple Pay). 

Mobile wallets for payroll require you to deposit employee wages into their phone’s electronic accounts. Employees with mobile wallets can use the funds in their accounts to directly make purchases. 

Time and cost of mobile wallets

Depositing money into an employee’s mobile wallet is a relatively streamlined process for both employees and employers. 

But before choosing mobile wallets as your payment method of choice, think about the associated fees. Fortunately, the fees for person-to-person transfers are either nonexistent or small when paying with a bank account. 

However, employees may have to pay a fee when withdrawing money from their mobile wallet.  

Providing a pay stub 

Depending on your business location, you may be required to provide a pay stub to your employees—regardless of their payment method. Pay attention to pay stub requirements by state to stay compliant. 

So, what is a pay stub? Pay stubs show employees their gross pay, deductions, and net pay. Think of a pay stub like a receipt that shows employees you’ve paid them. 

Payroll recordkeeping 

Regardless of the payment methods for employees, you need to keep accurate records for at least three years. 

Detail information like the date, amount, and pay period for all employees. And, record gross wages, deductions, and net pay. 

How to pay your employees: What not to do

Can an employer require direct deposit, pay cards, cash, paychecks, or mobile wallets? 

Most states have laws that regulate when you can make certain types of payment mandatory, like direct deposit and pay cards. Typically, you will need to offer more than one payment method to your employees.

For example, you can offer employees the option to receive their wages via direct deposit or through paper checks. That way, employees without bank accounts can receive their wages.

When choosing how to pay employees, don’t violate state laws. Work with your employees to ensure the payment method works for them.

Business Interruption Insurance: Protecting Your Company from the Unexpected

Your business is your pride and joy. And if you’re like most owners, you’ll do whatever it takes to protect it at all costs. But, you can’t always protect your company from unexpected events, like natural disasters. To keep your business safe and help it stay afloat if disaster strikes, consider investing in business interruption insurance. Read on to learn about interruption insurance, including whether or not it covers coronavirus-related claims.

What is business interruption insurance?

Business interruption insurance, also known as business income insurance, is coverage that replaces business income lost due to a disaster. The insurance can help a business continue to pay its bills while it is temporarily closed because of a disaster.

Typically, business interruption insurance is a part of a business insurance policy. In most cases, it is not a standalone insurance policy business owners can purchase.

Keep in mind that the definition of “disaster” may vary depending on your business’s insurer. Business interruption insurance may cover the following types of disasters:

• Fire
• Wind
• Storm
• Theft
• Damage to property (e.g., tree falls)
• Other natural disasters


• Who can receive interruption insurance?

  Any business owner can get business interruption insurance through their insurance company. Many business owners get interruption insurance if they have a physical business location that needs protected from covered disasters (e.g., property damage).
  Small businesses may get a policy that includes things like property, liability, and business interruption coverage.
  Home-based businesses and self-employed individuals may also be able to receive business interruption coverage through a homeowners insurance policy.

  What does it cover?

  Business interruption insurance covers a number of expenses that a company may not be able to pay due to a disaster, including:
  • Lost revenue
  • Fixed costs (e.g., operating expenses)
  • Relocation costs
  • Commission and training costs
  • Employee wages
  • Taxes
  • Loan payments
  • Mortgage, rent, and lease payments
  Generally, business interruption insurance doesn’t cover utilities, short interruptions (e.g., power outage), or partial interruptions (e.g., scaled-back operations).
  Your business interruption insurance likely also has a restoration period. A restoration period is the length of time that your policy helps pay for lost income and expenses while you restore your business. Some plans cover up to 12 months of losses while others can cover up to 18 or 24 months.
  Business interruption insurance coverage varies. For example, some insurance companies may cover relocation expenses while others might not. Check with your insurer to see what is covered under your business interruption insurance policy.

  How much does it cost?

  The cost for business interruption coverage depends on your insurance agency, industry, number of employees, and the amount of coverage you need.
  Rates may also vary depending on your location and amount of risk. If your business is located in an area with an increased risk of natural disasters (e.g., hurricanes), you may need to pay more than businesses in lower-risk areas.
  Before you invest in a business interruption policy, determine a dollar amount for the coverage limit by looking at things like profits for 12 – 24 months and related expenses (e.g., payroll and relocation costs). That way, you can be prepared when you discuss insurance options with your provider.

  How do you get business interruption insurance?

  To get business interruption insurance, talk to your insurance provider about your options. If you don’t already have interruption insurance, your business’s insurance provider may be able to add it on to your plan.
  Do your homework before committing to a provider or plan. Find out what each potential insurance provider covers for your business and compare pricing.

  Do I need a business interruption policy?

  You never know when disaster is going to strike your business. So, it’s always better to be safe than sorry. If you’re not sure if your business needs interruption insurance, consider the pros and cons of getting insurance and think about the following questions:
  • Where is my business located?
  • Am I in a high-risk or low-risk area?
  • Have other businesses near me experienced a disaster?
  • Will getting insurance be better for my business in the long-run?

  Business interruption insurance and COVID-19

  So, the question and answer you’ve all been waiting for: Does business interruption insurance cover coronavirus claims and temporary business closure due to pandemics? The answer … probably not.
  In most cases, business interruption insurance only covers lost income and expenses for property damage-related claims due to a disaster (e.g., hurricane). Most business interruptions policies likely will not cover lost profits from the coronavirus or any future pandemics.
  Standard interruption insurance doesn’t cover claims related to incidents like the COVID-19 pandemic. However, it all depends on the insurer and the contract. Most policies specifically exclude losses from pandemics because they impact all companies simultaneously. Many insurers began adding virus and pandemic exclusions to their business interruption insurance policies after the SARS outbreak in 2003.
  The language of the contract can play a huge role in whether or not things like the coronavirus are covered. Policies that don’t specifically exclude viruses may be able to provide some type of coverage for businesses that had to temporarily close down due to the coronavirus crisis. Check with your insurance provider to find out whether you can claim coronavirus-related losses under your policy
  Have questions, comments, or concerns about this post? Like us on Facebook, and let’s get talking!
  This is not intended as legal advice;

What Is the Penalty for Late Tax Return?

Forgetting to submit your tax return can be stressful. And even worse, the IRS can charge you a late filing penalty. Read on to learn about the penalty for late tax return and what you can do to avoid future penalties.

Penalty for late tax return

If you earn or receive income, you likely need to file an annual tax return, like Form 1040, U.S. Individual Income Tax Return. You use Form 1040 to report income and deductions to the IRS.

The individual tax return due date is April 15 each year. If the due date falls on a weekend or holiday, your tax return moves to the next business date. If you forget to submit your tax return by April 15, you may receive a penalty from the IRS.

If you own a business, your business structure impacts your business tax return due date.

What is the penalty for late tax return? The penalty you receive for a late tax return depends on your situation.

Common reasons for late tax return penalties include:

• Failing to file your tax return by the due date
• Failing to pay the taxes you report on your return by the due date
• Not paying enough taxes for the year with estimated tax payments

The IRS calculates your penalties based on the above factors. To get a full breakdown of different penalties for failing to file or pay your tax return, visit the IRS’s website.

Whether or not you owe money to the IRS has a huge impact on the penalties you receive.  And in some situations, the IRS does not penalize you.

No penalties

If you don’t owe any money, you have little to worry about. Taxpayers who submit a late tax return and don’t owe money typically are not penalized.

Although you won’t be penalized, you should still file your tax return as soon as possible. For tax year 2018, the absolute latest you can file is April 15, 2022. If you file an extension, your tax return is due by October 15, 2022.

If you miss your Form 1040 deadline, your refunds are turned over to the U.S. Treasury.

Again, you do not receive a late penalty if you are receiving a tax refund and you do not owe money to the IRS.

Penalties for businesses

If you own a business and miss your deadline for filing, the IRS says you should file your business tax return as soon as possible. And if you owe business taxes, pay those as soon as possible.

Depending on the business and situation, you might receive a small financial penalty for a late filing or payment (e.g., interest fees). But in most cases, the IRS will accept your late payment with little hassle.

If you’re close to your deadline or miss it, consider e-Filing your late return if possible to speed up the process.

Late filing and payment penalties

Ultimately, the penalty you receive depends on whether your filing or payment is late. Take a look at the different types of penalties for paying or filing your tax return late.

Late filing penalties

You will likely receive a late filing penalty if one of the following is true:

• You owe taxes and didn’t file your return or extension by April 15
• You filed an extension but did not file your return by October 15

Late filing penalties can include:

• Paying 5% of the additional taxes owed for every month your return is late, up to a maximum of 25%
• If you file more than 60 days after the due date, you must pay the minimum penalty of $205 or 100% of your unpaid tax, whichever is higher

Late payment penalties

Late payment penalties apply if you did not pay taxes owed by April 15, regardless of if you filed an extension.

If you’re guilty of the above, penalties you’re subject to include:

• Paying 0.5% of the additional tax you owe for every month your tax remains unpaid, up to a max of 25%

If there are any months where both the late payment and filing payment penalties apply to you, the IRS waives the 0.5% late payment penalty.

Interest fees

Interest compounds daily and starts accumulating on unpaid taxes the day after your due date until your bill is paid off. Currently, the interest rate is 5%.

How to pay late tax return penalty

In most cases, the IRS will mail you a letter stating how much you owe in penalties.

If you need to pay a late tax return penalty, follow the instructions in your penalty letter and submit your filing or payment to the IRS as soon as possible.

If you can’t pay taxes on time or file your tax return, contact the IRS for additional options (e.g., installment plan).

Penalty relief

Before you begin paying off your penalties, look into penalty relief. Eligible individuals and businesses may be excused from paying certain penalties.

Penalties eligible for relief include:

• Failing to file a tax return
• Forgetting to pay taxes on time
• Not depositing certain taxes

If you made an effort to comply with IRS requirements but were unable to meet your obligations because of circumstances beyond your control, you may be able to take advantage of penalty relief.

Check out the IRS’s website for more information about whether or not you qualify for penalty relief.

Avoiding a late tax return penalty

Forgetting to submit a tax return can happen to anybody. To help avoid being tardy on future tax returns, use the tips below:

• Prepare and pay (if applicable) your tax return in advance (e.g., one month before the due date)
• Add reminders on your calendar to help remember your due date
• Have a designated person remind you about your tax return due date
• Create a plan in case you forget to submit your tax return
• Use software so you aren’t scrambling to put your records together
• Want to inspire our next article? Connect with us on Facebook and let us know your ideas or the questions you want answered!
• Randall Jenkins is the Owner of Jenkins Tax Services & Business Consulting LLC

This is not intended as legal advice;

Power Lead System

You heard about the new Power Lead System …

But can you really make money promoting it?

In this “Power Lead System Review” let’s take a hard, honest look at the program – both the pros and cons – so you can make the right decision for you and your family.

POWER LEADS SYSTEMS REVIEW

Hi, my name is Randall Jenkins.

Since 2013, I have made a full-time executive income working part-time in our spare time online.

In the past few years our income has increased dramatically.

Why?

Because a few years ago we started promotion affiliate programs like “Power Lead Systems” that paid more than the average, standard 20, 30 even 40% commissions. And…

That was the difference that made all the difference.

Today this new breed of affiliate programs are STILL HOT… and the Power Lead System has proven to become of the best because they offer a unique twist in their compensation plan

Now, before we go too much further…

Check this out…

POWER LEAD SYSTEM REVIEW

Did you watch the video?

If not, why not?

The reason I ask is because MOST people join programs because of the hype and promise of making easy money fast.

Yet the unfortunately reality is MOST people never make a dime.

Because MOST people really have no clue what they are getting into and they really want to believe “this time” or “this product” or “this new shiny deal” will somehow magically sell or promote itself when, in reality…

…well, you and I both know better. Right?

A product, service or business opportunity WILL NOT sell itself.

So do yourself a favor, click the button, sign up free and DO YOUR DUE DILIGENCE.

Take a close, hard, open-minded minded look at the entire Power Lead System product first – then come back and let’s dissect the money-making reality a bit more.

WHAT IS POWER LEADS SYSTEM?

According to the company’s mission statement:

Power Lead System provides entrepreneurs with all the online tools and training necessary to start and grow their business, generate leads, make more sales including the ability to create unlimited lead capture pages, unlimited sales pages, unlimited sub-domains, video post cards, entire sales funnels, unlimited auto-responder campaigns, unlimited broadcasts to your list, ad tracking, floating capture forms, the ability to create and share entire sales funnels, and more.

PLS gives brings value to the table in two different ways:

• The potential to take your existing business to the next level by giving you instant access to powerful state-of-the-art online tools, relevant training, and weekly coaching to help you achieve more success.
• A way to earn leveraged, residual income through their hybrid Affiliate program.

You do not have to become an affiliate to sign up for the FREE LEADS FOR LIFE program, purchase products or enjoy the benefits of hanging out with a community of like-minded entrepreneurs. Signing up to make money with PLS is completely optional.

POWER LEAD SYSTEMS PRODUCTS

The product and training lineup offered by PLS is constantly changing to keep up with what is working best today.

As of June, 2019, here is a list of the current products affiliate earn commissions on:

• Lead Lightning
• Lead Lightning Residuals
• PLS Residual Commissions (Gold)
• $147 Free Ad Secrets (Diamond)
• Social Profit Academy Generation 1 (Platinum)
• Social Profit Academy Generation 2
• Master Traffic Institute Generation 1
• Master Traffic Institute Generation 2

POWER LEAD SYSTEM COMPENSATION PLAN

Here’s the bottom line…

If you do not promote the Power Lead System you will not make any money.

None. Nada. Zip. Zero. Zilch.

If you do promote the program by taking consistent action over an extended period of time – you may go on to make quiet fortune in the next few months (and we’ll talk more about the HOW to promote the system here in a minute).

Because the “twist” that makes this program so unique is you earn a 50% matching bonus on all the monies earned by the people you refer to PLS as long as they stay active.

It’s a brilliant twist on an already proven model.

Here is how the brilliantly simple, yet powerfully profitable power lead system compensation plan – the 2-tier comp plan works:

IS POWER LEAD SYSTEM A SCAM?!

Search the internet far and wide for “power lead system scam” and I’m confident you will find dozens of different blog posts, forum posts and even Youtube videos that fall into one of two categories:

• People who got in, did nothing and are disgruntled about it
• People who simply use the word SCAM to catch attention

Promoting a “scam” headline is a pretty popular way to drive visitors to your product reviews because it works.

No one wants to get cheated out of their hard-earned money so if you promote a WARNING – it catches attention. Then, of course, you simply let people know it there is nothing to worry about.

But the majority of “scam” posts you find will come from people who simply BOUGHT THE DREAM without thinking it through as a business. How will you promote the program? How will you get traffic, leads and sales?

So let’s talk more about that now…

POWER LEAD SYSTEM MARKETING PLAN

I actually signed up for the program after spotting a post on Facebook.

I clicked the link, watched the videos and immediately signed up on the spot.

When you first log in this is what you see:

and all you need to do to get started is to CLICK THE EASY BUTTON.

It will take a just a few minutes to set up a new lead account to generate leads for life. It make take a few hours to a few months to discover ALL the powerful tools you will now have your hands on to take your business, income and lifestyle to the next level.

UNLIMITED EMAIL FOLLOW UP CAMPAIGNS, SMS TEXT AND ECARDS

SET UP WEBSITES, SUB-DOMAINS, AUTOREPONDERS AND TRACKING

 PROMOTE ANY BUSINESS

LEVERAGE YOUR BEST PROSPECTS & CUSTOMERS

ACCESS EVERGREEN TRAINING WHEN YOU NEED IT

KEEP TRACK OF AFFILIATE COMMISSIONS EARNED

So one of the fastest, easiest ways to get into profit is to simply SHARE the program with your friends on Facebook, Twitter and LinkedIn.

• If you have an email list, send out a broadcast.
• Visit a few forums about “making money” and write a few “reviews” and post them (this is free).
• Post ads on free classified sites.
• Post video reviews on Youtube
• Write a few blog posts
• Run a few paid ads

In the back office PLS, you will be given access to private training and tools designed to help you promote the program for profit.

The difference that makes all the difference is YOU.

Will YOU follow the step-by-step instructions, sign up, and take CONSISTENT effort over time?

If you do, you will make money. If you don’t, you won’t.

Simple as that.

Plus, keep in mind you only need to sign up ONE person like me and… that’s it!

If you did nothing else, ever… you will still make money!

Once you get into the back office, you will find PSL is really a complete marketing system in a box and the WHAT you decide to promote is entirely up to you.

Power Lead System comes with a handful of ready-to-go splash pages and videos that promote PLS so all you need to do is sign up and drive traffic.

Buy you can also build your own splash pages with the system and promote anything else you might be involved it.

Bottom line – the program gets TWO THUMBS UP from me.

Bless and be blessed,

Randall Jenkins

JOIN TODAY and I will show you EXACTLY how we are producing our results and how you can actually get me to help you build your business on complete autopilot so you can truly EARN WHILE YOU LEARN how to leverage your new PLS business to make 100k (or more!) in the next 12 months (or less!)

Power Lead System Update New Power Lead System How To Earn Daily

1) Go to: http://isr.jenkinsmarketinggroup.com/
2) Start your free trial
3) Upgrade to minimum GOLD (become an affiliate) in your back office.
4) Start getting unlimited leads: http://isr.jenkinsmarketinggroup.com/

I will then email you everything you need, including our training.

In this video the Power Lead System review for 2020, learn how to make money with the opportunity while promoting your primary business. If you currently don't have a primary business Power Lead System can be just that! Follow the steps below to get started. With the power lead system you will receive "Done for you funnels" Copy & Paste Share Codes, How to Use Free & Paid Traffic to Earn Consistently, and support from me every step of the way! :)

Step 1: Visit the site below to get more info
YOUR POWERFUL MONEY MAKING FUNNEL: http://isr.jenkinsmarketinggroup.com/

Step 2: Send me an email when you are all set so you can get the step by step training to set up your money making funnel: jenkinsrandall@gmail.com

Step 3: Call me directly to get started or with questions
512-589-0744

Step 4: Send me a direct message on facebook so we can connect there.
https://www.facebook.com/jenkinsrandall....

Step 5: Join our Facebook group: https://www.facebook.com/groups/10739......


If you have questions about the enrollment process, feel free to call me at (518)364-6568

power lead system, free lead system, lead lightning, lead lightning the power lead system, power lead system review, lead lightning power lead system, the power lead system, lead lightning review, lead lightning system, free lead funnel system, power lead system scam, power lead system features, free lead system forever, power lead system pls, lead lightning marketing system, lead lighting, power lead system, lead generation, free leads, lead lighting scam, amanda wray, amanda wray phone number, amanda wrap, how to make money, how to make money online, make money online, home based business ideas, work from home, work from home jobs, work, online jobs, jobs from home, earn, ways to make money, how to make money fast, make money from home