One of the primary responsibilities of a business owner is calculating and distributing wages to your employees. In addition to withholding taxes and keeping detailed records of payments, you’ll also have to select a method for delivering funds to your workers. Below are some of the common payment method options for businesses who haven’t signed up with a payroll services provider.

A Guide to Common Types of Payroll Methods

1. Paper Checks

Due to their seemingly low costs, many business owners still prefer to provide paper paychecks. While many payroll software applications do simplify printing your own checks, most will need to be individually signed, which takes time that could be spent more productively. While some employees prefer receiving a paper check for their records, those without bank accounts or physical bank locations nearby may experience difficulty receiving their wages.

2. Cash

Depending on the nature of your business, you may prefer to pay your employees in cash. While there is no regulation prohibiting cash payments, you must keep meticulous records, as this method tends to attract suspicion from the IRS.

3. Direct Payment Cards

With a payroll card, you can load an employee’s wages directly into a separate account, which they can access whenever they wish. This method gives you more control over costs and allows you to offer direct deposit services to employees without bank accounts, making them a popular option with payroll service providers.

4. Direct Deposit

By far the most popular and convenient option, direct deposit allows you to send wages directly into an employee’s bank account. Like payment cards, you will be expected to pay a fee, but for many business owners the time savings is worth the investment. Many payroll service providers recommend direct deposit due to its efficiency, security, and general reliability.

With over 38 years of experience and some of the most advanced tools in the industry, Michael C. Davis, CPA, Inc. offers a variety of accounting and payroll services to business owners throughout the Akron and Cleveland, OH, areas. Along with distributing your employee’s wages, their team will also handle all the other payroll details, from calculating and paying taxes, generating quarterly reports, and preparing W-2s. Visit their website for more on their payroll services or call (330) 376-1099 to find out how they can help.