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Our mass payments methods
The practice of freelancing lets the individual work on their own schedule, accepting projects from multiple sources and essentially crowdsourcing their income, just as their clients crowdsource their work to multiple freelancers. This creates an important question for people though. How should freelancers get paid?
From the freelancer’s perspective, they want quick pay with no or low fees. From the client’s perspective, they want a simple process with no or low fees. The simple answer is they should use EasyStaff.
Reducing Workload While Processing Freelancers’ Payouts
Many businesses outsource the majority of their work by hiring independent contractors. From logo design to their website development, freelancers do the work. They also get hired for the app coding, SEO research, case studies, business plan writing and much more. That increases the importance of the question of how to pay freelancers.
Many of the most common methods of payment prove costly and require a significant wait time for the freelancer. Check writing tops this list. Good old-fashioned paper takes the longest of all methods, plus the client may not have the funds to cover it by the time it processes through both banks. Bounced checks cost both sides more money.
Many independent contractors use Paypal. If they use it for long though, they discover that its fees pile up. Paypal charges the payee 2.9 percent on each payment they receive, plus a flat fee of $0.30 each. That can amount to thousands of dollars in a single year for a freelancer who works as an independent contractor as their sole source of income. Despite its ease of use for the payor, payees soon become frustrated with Paypal.
The freelancer may accept credit card payments. This requires them to set up a merchant account and sign up with a payment processor or Paypal. The freelancer then obtains credit card processing equipment to run the credit cards. This works best when the contractor and the client reside in the same physical area. They may also accept credit card payments through Google Wallet, PayPal, QuickBooks, Square or Wave. While this can grow costly for the freelancer who must pay a fee on every credit card transaction similar to the cost of using Paypal, it also proves cumbersome for the client since they must pay each contractors manually and separately.
Then, there’s the method that Easy Staff uses – electronic funds transfer (ETF). You’re probably familiar with ETF already. You probably get your paycheck in this manner. It is also how the IRS makes its electronic refund payments. Quite simply, this provides the fastest, simplest, cheapest way to pay or get paid. With an EFT, payment moves directly from one bank account to another. The transfer takes two to four days to process. By using a service like Easy Staff, you can easily make mass payments to a number of employees and independent contractors all at once.
Freelancers and Contractors Payment Processes Automation
So, a payments solution like Easy Staff answers the question of how to pay freelancers on freelance job sites like Craigslist. This method lets you easily pay freelancers online on a secure platform that can handle multiple currencies. Mass payments using EFTs lets you pay in your native currency and easily have the accepting bank handle the exchange rate. At the center of these simple, quick transfers sits the network that connects all the banks – the automated clearing house (ACH) network. ACH transfers offer an online way to pay freelancers that provides built in security.
Using EasyStaff has numerous advantages, including:
- Simple on-boarding,
- automate global payments,
- eliminate 80 percent of the time spent on documenting and paying contractors,
- reduce fraud and payment errors,
- reduce financial and communication operational friction,
- maintain national and international compliance requirements.
Contact EasyStaff today for a demonstration of our mass payments solutions. We can help you pay everyone faster and save money doing so. Call us today.