Pay in is essentially the final act of paying an employee — i.e., the actual transferring of the funds into their own personal account. On a global scale, pay in can become more complex, due to several intermediary steps often required to make the payment happen.
How does pay in work?
The process of pay in differs depending on the payment method chosen. With that being said, it tends to include the following steps:
- Calculating the amount to pay in, including factoring in things like tax deductions and benefits
- Processing the payroll through the relevant software or system used
- Storing and securing employees’ payment data, including their preferred payment method and bank details
- Maintaining records of the transaction
- Notifying the employee about the completed transaction
Pay in VS pay out
‘Pay in’ and ‘Pay out’ are essentially both different components of the same transaction journey. The difference is that while payout refers to the distribution of funds from a single source and into the relevant employee accounts, pay in zeroes in more on the stage concerning the funds entering said accounts.
Examples of pay in
- Automated Clearing House (ACH)
- Cash Deposits
- Direct Deposit
- Mobile Payments
- Online Payment Systems
- Wire Transfer
Managing pay ins on a global scale
With a global workforce, pay ins require more consideration and in-depth understanding regarding each country’s different regulatory and fee requirements.
With a single platform for payroll payments, you can automate the payment process to ensure the right method is chosen for the right situation.