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Top methods for paying employees
There are four primary payment options when it’s time to run payroll:
- Direct deposit
- Payroll cards
Direct deposit is the most common wage payment method in the U.S., especially for salaried employees. In fact, more than 93% of employees earn their pay this way, according to the Getting Paid in America survey. Because direct deposit is so popular, most payroll platforms include direct deposit features.
Cash payroll is less common today than it was in the past, and it is often associated with paying workers without a paper trail. However, it is legal to pay workers a salary in cash if you follow the proper employment laws.
Printed checks were the most common payroll method before digital banking gave rise to direct deposit. Although some financial experts disagree about whether paper checks will become totally obsolete in the near future, it’s a reliable payroll method that balances flexibility and efficiency.
Also known as paycards, payroll cards are prepaid cards that are directly managed by your payroll software provider. Some payroll providers also use payroll cards to enable on-demand payroll, meaning employees can access their earned wages at any time.
Understanding payroll compliance and payment laws
Before choosing a payroll method, review your state laws and relevant federal laws such as the Fair Labor Standards Act. Many states have paycard laws that dictate how the cards can work, for example, and employers can’t make direct deposit mandatory for their employees in every state. It’s best to take time to review the laws to prevent any mistakes and penalties.
Most payroll software applications were built in compliance with state and federal laws, so the right software can give you peace of mind when it comes to paying your employees. Whether you need to track hours worked and holiday pay for an hourly employee, log paid time off and employee benefits for a salaried employee, or pay international employees in their local currency, there’s a payroll app that can help.
Check out our Payroll Software Guide to find the right solution for your business, or explore our other payroll resources:
Paylocity is a different kind of HR and payroll provider. We partner with you to create great software that delivers on your unmet needs – solving today’s challenges and designing solutions for the unknowns of tomorrow. And we stay your partner with dedicated, on-demand support every step of the way. Build a better future for your organization with a scalable solution focused on your business outcomes and priced for your budget.
Payroll can be a time-consuming, administrative task for HR teams. Paycor’s solution is an easy-to-use yet powerful tool that gives you time back in your day. Quickly and easily pay employees from wherever you are and never worry about tax compliance again. Key features like general ledger integration, earned wage access, AutoRun, employee self-service and detailed reporting simplify the process and help ensure you pay employees accurately and on time.
Deel's full-suite of HR tools allows companies to manage the entire employee lifecycle—from recruitment and onboarding and beyond—in 150 countries. All this from a single, easy to use interface. US and Global Payroll allows you to pay any type of worker in 100+ countries, and all 50 states, in whatever currency you choose. And with 200+ in-house legal experts and entities in 120+ countries, using Deel means you’ll always be compliant with local regulations.