For a long time, some or all employees are paid in cash, since it’s the easiest and fastest method of payment.
For a long time, some or all employees are paid in cash, since it’s the easiest and fastest method of payment. As technology continues to advance, businesses have shifted to other methods of payment such as bank transfers and direct deposits. This form of payment has been accepted by most employees, as long as the employer provides a pay slip that sets the tax, necessary contribution, and gross pay for the period. While it is not illegal to pay your employees in cash; nevertheless, it is not the best business practice for several reasons. Here are some of the risks of paying employees in cash.
Some of the risks of paying employees via cash include:
Paying employees via cash is very risky nowadays. Therefore, businesses should embark on an appropriate payment method to reduce risks. Cash in-hand payment limits the employees from enjoying their social security benefits, and unfair wage payments. Signup with us and access our complete employee management and payment solution to enjoy seamless payment processes with just a few clicks.
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