Navigating the Gig-Economy and Effective Payroll Management: How Will You Pay a Team of Contract Employees?

Effective Payroll Management | Back Office Support

COVID-19 has created a seriously unstable economy. As a business leader, this makes it hard to predict demand from one month to the next — or sometimes even one week — so you’ve decided to start employing contract workers.

You’re excited about the flexibility you’ll gain by creating a team of contractors, but a bit unsure about the back-office tasks that come with it. Decisions like whether to do weekly payroll processing and how to do it in the first place can be very confusing at first, so use this guide to get started.

Four Tips to Streamline Your Contract Employee Payroll System

Create a Set Pay Schedule

Gig workers are more flexible in many areas — i.e., their schedule and workload — but they still want to get paid on a regular basis like everyone else. Make this easy for yourself and them by setting up a pay schedule that all contractors will follow. For example, everyone is paid weekly on Fridays or everyone is paid on the 15th and 30th of the month.

Decide How Payment Will Be Remitted             

Different people like to receive their paycheck through different mediums — i.e., direct deposit, paper check, or PayPal. Choose one or two modes to offer, then stick with them. This will make it easier to remit payments each month, and eliminate the confusion that comes with trying to send payments a multitude of different ways.

Choose One Point Person

It’s inevitable that people will have questions about their pay. Whether they were paid an incorrect amount or want to switch their direct deposit bank account, they’ll need someone to go for assistance. When possible, it’s best to just designate one person to assist, because this makes it easier, and by default, they’ll become the de facto subject matter expert.

Consider Partnering With a Back Office Support Vendor

Doing payroll for contractors requires a lot of time, energy, and expert knowledge. Therefore, delegating this task to a back office vendor can be a good idea. They’ll handle all the paperwork — including weekly payroll processing and employee direct deposit — so you can focus on core business responsibilities.

Need Help Navigating Payroll for Your Contract Employees?

Team up with ECS! We offer back office support to employers and recruiters, so get in touch today to find out what we can do for you.

 

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