No More Last Minute Panic: Pay Employees Quick and Easy

The 1991 Payment of Wages Act states that employees must have their method of payment recorded in their contract of employment. As an employer, you can choose to pay your employees by cash, cheque, bank draft, postal order or credit transfer to an employee’s bank account. Whether you pay your employees every week or every month, you must make sure they’re paid on time, every time.

Not sure which payment method is best for paying your employees? We’ve broken down the pros and cons of the three most common payment methods below.

The 3 most common ways of paying employees

Cash

If you’re looking for a speedy and low-admin way of paying employees, the go-to option is often cash. An upside to cash payments is that they’ll have access to their wages instantly, however, it’s worth considering potential security risks too. Having large amounts of cash stored onsite is far from ideal. So, tread carefully before deciding if this payment method is right for you.

In recent years, with hybrid working becoming the norm, it may not suit some employees to come into the office on pay day to collect their wages.

Cheque

When it comes to paying employees, cheques can seem like a dinosaur – but don’t write them off just yet. Cheques can provide peace of mind once it’s been cashed or lodged, there’s proof it’s been received.

However, this isn’t always the most popular option with staff – there can be a long waiting period between receiving the cheque and being able to access the funds. This can be up to 5 business days depending on which bank the cheques are drawn from. If you’re posting cheques, add in possible postal delays and you can understand why some people might not be so happy about this form of payment.

Credit transfer

Credit transfers are by far the most common way of paying employees today. Paying employees by credit transfer is a secure and reliable form of payment, providing a traceable record of each payment. This allows employers to easily identify and track payments, streamlining their accounting processes.

Since SEPA was introduced, credit transfers have become easier, faster, and, more secure. Employees can get their money within one business day compared to the three days of waiting with older systems.

What is the easiest way of paying employees by credit transfer?

Say goodbye to bank files and waiting three business days for payments to process you can now pay your staff quickly and easily with Bright’s payroll software, BrightPay, through our integration with payment platform, Modulr. Because the two systems are integrated, you’ll be able to send the payroll information to Modulr in just a few clicks.

Once the payroll is finalised in BrightPay, choose Pay by Modulr from the drop-down. This will take you to your Modulr account. For security purposes, you’ll be asked to authenticate your login via your mobile device. Then all you have to do is follow the instructions onscreen and you’ll be able to make payments to your employees. If you process payments before 2:00pm, employees will receive their wages on the same day. Otherwise, the payment will be processed on the next working day.

What are the benefits of paying employees directly through BrightPay?

Sick of admin work and waiting around for payments to transfer to employees? With BrightPay and Modulr’s integration, you can make direct payments quickly, easily and securely. Plus, you’ll get all the benefits that come with it, including:

• Minimal admin work

• Same day turnaround

• Flexibility to make any last-minute changes

• Full traceability for added security

This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.