When it comes to running a business or organisation, you may find yourself having to pay people who aren’t necessarily on your permanent or regular payroll. For example, freelancers, contractors, volunteers or even guest speakers may have to be reimbursed or paid for their services. This can become tricky and time consuming when people aren’t getting ongoing paycheck and therefore, their details aren’t in your pay system. In this article, we will be covering who should be on your payroll, the difference between reimbursement and payment, as well as how to reimburse or pay people who aren’t on your regular payroll system.
Who Should Be On Your Payroll?
Being on an automated payroll system is a necessity for most employees, as it ensures that everyone gets their money on time. Payroll is typically a list of employees that are registered by the company who are entitled to receive payments as well as other work benefits and the amounts that each should receive.
So, who should be included in your payroll? Your payroll or automated payment system should only include people who work for your company or business on a recurring basis and have a contract with you. Payroll is used to track an employee’s hours, calculate their overall pay and distribute their payments via direct deposit to employee bank accounts or by check.
The Difference Between Reimbursement And Payment
Having to pay a freelancer, contractor or volunteer for their services can come in many different forms. Some may provide a contract, which states what they will be delivering and how much it will cost. After the service is complete, they will typically send you an invoice which will leave you with 30 days to pay them. Others may only be expecting to be reimbursed for their expenses.
For example, many volunteers across the UK require organisations to pay for their travel, whether that be by car or public transport and sometimes even their at work meals. So, it’s important to understand the difference between reimbursement and payment, plus what the person not on your payroll is requesting.
How To Reimburse Or Pay People Who Aren’t On Your Payroll
The way that many businesses or organisations pay people who aren’t on their payroll can be very time consuming, especially if there is a break in communication. At the moment, a lot of companies choose to pay their outsourced workers via bank transfer. This requires knowing a lot of personal information about their volunteers such as their bank details. If used regularly, their personal information is then stored by the company, typically in a spreadsheet or on a database. This can be extremely unsafe and puts your volunteers details at high risk of being stolen.
In addition, through paying your freelancers, contractors and volunteers through bank transfer, you are also wasting a lot of time – which of course means you are losing money. The amount of employee-hours it takes to pay people who aren’t on your payroll can be astronomical – especially if you do a lot of outsourcing. It can also take even more time if something goes wrong in the process. For example, if you misspell someone’s name and then the payment doesn’t go through. You would then have to retrieve the correct information once again.
Luckily, there are new tools such as vHelp, which are revolutionising the way that people reimburse or pay people who aren’t on their payroll. Programs like vHelp enable businesses or organisations to reimburse those who are not on payroll quickly and securely through their website or mobile app. Gone are the days of relying on bank transfers or cheques. You can save yourself both time and money, as well as being able to store all of your volunteers’ private information securely through systems such as vHelp.