Are you tired of dealing with paper checks and snail-mail when paying your independent contractors? Consider using ACH payments: An electronic payment system that makes it easy and efficient to transfer funds between banks. In this piece, you’ll learn you can use ACH to pay your independent contractors.
Key takeaways:
Follow the short steps below to set up ACH payments for your team.
Set up ACH payments: First, you'll need to set up an ACH account with your bank or a third-party payment processor that offers ACH services. This should be a quick and easy process that will save you time in the long run. You’ll likely want to chat with your bank about their ACH processing fees before proceeding.
Collect information from your contractors: Next, you'll need to collect the necessary information from your independent contractors. This includes their bank name, routing number, and account number. Make sure to keep this information secure and confidential.
Initiate the payment: Once you have the payment information, you can log in to your ACH account and input the payment details, including the payment amount and contractor's banking information. It's fast, easy, and secure!
Wait for the payment to clear: ACH payments typically take one to three business days to clear. So, make sure to plan ahead and ensure that you have the necessary funds in your account before initiating the payment.
Confirm the payment: Once the payment has cleared, confirm with your independent contractor that they have received the payment. It's always a good idea to keep records of the payment for future reference.
In conclusion, ACH payments are a reliable and secure way to pay your independent contractors. By following these steps, you can ensure that your payments are processed smoothly and efficiently, and save yourself valuable time and resources.
If you’re reading this, you may want to give Panther a try. Our all-in-one contractor hiring platform means that instead of having to deal with a dozen different banks, you can complete your payroll with a couple clicks, no matter where your contractors live.
Sound interesting? Click here to watch a 4-minute product demo and see the platform firsthand (without ever having to book a lengthy demo request call).
