Handling payroll for traveling employees?

Question

How do you pay employees who are out-of-state (and so they can't cash checks,) and don't have a personal bank account. I run payroll in Texas, but need to get money to them in another state. I currently use Western Union but (A) it's expensive (B) it seems messy for taxing/accounting. (Elaboration on "B" - how do I prove to the IRS that I got the money to them, and how do I record the whole mess in Quickbooks which only lets me run payroll from a checking account and not out of petty cash to record a cash payment!) Oh my!

Answer 1

In this day and age, it's darn near impossible to get around without at LEAST a debit card. Tell your employee due to 'some new law' that you can only pay them by check.

Answer 2

1. You could require them to get a bank account, so that you can do direct deposit.

2. You could Fed Ex the checks overnight to them.

3. Maybe there's a bank that's both in your city and their city. Maybe this bank will "pay" them for you. You'd have to talk to the bank, and maybe the bank can do some kind of internal transfer. So that the branch manager in their city cuts them a check??

I think that 2 is the best.

Answer 3

Best way to handle this? Have your employees purchase prepaid debit cards from Greendot (initial cost is less than 10 bucks). Then, you can handle your payroll the normal quickbooks way and set your employees checks as direct deposit onto their greendot cards. Got to www.greendotonline.com and apply for the cards. It doesnt cost anything for them to have it direct deposited and it only costs a dollar for each check through quickbooks.

Answer 4

Do what trucking company's do, use comdata cards. You transfer money into their comdata account, that you set up and they have a card that allows them to withdraw it from any atm. It also gives you statements and everything. It's a really nice system.