pay freelancer
Share on facebook
Share on twitter
Share on linkedin

5 Ways to Legally Pay Freelancers

Freelancing is probably one of the most stressful job models out there, especially when it comes to cash flow. When clients don’t pay on time, it becomes incredibly difficult for freelancers to manage their finances or maintain the same quality of work. If you plan on outsourcing some of your business tasks,  you must find the optimal method with which you can legally pay freelancers. Fortunately, there are a couple of methods that can work for your freelance employees. Depending on their preferred method of payment, you can take your pick from the following options.

pay freelancers

1. PayPal

Out of all the methods mentioned here, PayPal is probably the most commonly used method of payment for freelancers. A lot of freelancers actually won’t accept any payment method except through PayPal. It is fairly easy to create an account on PayPal, as it’s completely free. Once your work is done and handed over, your clients will pay you electronically when you complete your work; thus, your money will instantly appear on your account. After that, you can make transfers to your bank account, which can take quite a bit of time, unless you’re willing to pay additional fees of course. You can also use a PayPal debit card for instant withdrawal from your PayPal balance. PayPal is the ultimate payment method for freelancers. It has one drawback, though: fees. With every PayPal payment you receive, you’ll have to pay a 2.9% transaction fee plus $0.30.

2. Credit Cards

Your freelancers may prefer credit card payments. What’s great about this payment method is that it can be processed either through PayPal or any similar payment system (this mostly depends on what system is available in your country). Some freelancers use an app to get paid via credit card. This means that you’ll need to make an arrangement with them to decide on which app to use as this entails registering for their preferred app and entering your personal information. If you’re working with a large number of freelancers, you might also want to use one of those trusty auto-calculators you can find online. The people at Pay Stubs 365 advise employers to use these useful tools to make payroll processing much easier and avoid any miscalculations. They are generally quite fast and effective, so you won’t face any problems operating them. If you’re looking for a secure and convenient tool, make sure to give payroll auto-calculators a try.

3. Electronic Funds Transfer

If you want a hassle-free method, Electronic Funds Transfer (EFT) is the one for you. This method doesn’t involve any apps or payment systems. The funds are directly transferred from your bank account to your freelancer’s bank account with no further steps. However, this type of transaction might take about 2-4 business days in order to get processed. Some freelancers prefer this method as it doesn’t involve any additional money transfers (like transferring money from their PayPal account to their bank accounts). However, EFT can be quite costly, as both banks will require transaction fees. Doubling the costs will force you to pay more for wiring the money.

pay freelancer

4. Square Cash

In addition to PayPal, Square Cash is another popular method which freelancers accept. The one difference, though, is that freelancers receive their money through a checking account. Square Cash is not as fast as PayPal and it might require days for the payment to reach your clients, just like EFT, but on the flip side, it doesn’t charge as much as PayPal does for transaction fees and per-transaction charge. In addition to that, sending money from one person to another is completely free. In addition to that, you won’t need to create a Square Cash account or an app. All you have to do is pay online at

Join Our Small Business Community

Get the latest news, resources and tips to help you and your small business succeed.

5. Checks

One of the easiest methods to provide payment for your freelancers is through checks. A large number of freelancers now accept them. The biggest advantage of this method is that they won’t have to pay fees for depositing the checks to their bank accounts. Checks, however, also have their downside. A lot of freelancers have reported delays in receiving the checks. They had to wait for the check to arrive in the mail, then wait for the check to be transferred to their bank accounts. Thus, it may not be the best method if your employees need the funds instantly.

Now that you know the available options, you can discuss with your freelancers to see which payment method will work best for both of you. You have to ensure that this process is easy for all parties involved and that no one will have to incur any additional fees throughout the process.

Some other articles you might find of interest:

Would you like to better understand how to drive and increase traffic to your startup website?

How to Drive & Increase Traffic to Your Startup Website

Do you have what it takes to start and run an online business?

5 Key Skills You Must Have to Start & Run an Online Home Based Business

Join Our Small Business Community

Get the latest news, resources and tips to help you and your small business succeed.