Table of Contents
showSpending too much on recruitment, payroll or global HR?
We help you find the Best Providers at the lowest cost.
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
- ACH payments offer a reliable and efficient way to pay independent contractors electronically.
- Setting up an ACH account is quick and easy.
- ACH payments take one to three business days to clear. They’re much faster than traditional methods of paying contractors.
How to set up and send ACH payments to contractors
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 the 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.
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.
