Workforce Payments Guide United States
Last updated: Mar 27, 2025
Papaya offers Virtual IBAN accounts (or “wallets”) to hold your funds segregated and safeguarded until payments are ready to be processed. Opening and managing corporate bank accounts can often be complex and time-consuming, requiring extensive checks and due diligence.
Papaya’s Virtual IBAN solution, built on the trusted infrastructure of JPMorgan, streamlines this process-making it faster, easier, and more cost-effective while ensuring your funds are secured.
Delivery Timeline
| Currency | Route | Payment settlement speed | Cut off Time |
|---|---|---|---|
| USD | LOCAL | T | 14:00:00 |
Supported payment Types
Contractor payments, for additional information about our payments capabilities in this location, please contact us.
3rd Party Payments
| Authority | Payment Frequency | Due Date | Payment Method |
| US Corporate Taxpayers | Annually | 15th day of the fourth month following the close of its tax year | Electronic Funds Transfer |
| Form W-2 (Wage and Tax Statement) | Annually | On or before 31 January | Electronic Funds Transfer |
| Form 1099 series (Information returns) | Annually | On or before 31 January, 28 February, or 31 March | Electronic Funds Transfer |
| Form 1120 series (US Corporation Income Tax Return) | Annually | 15 April for C corporations, 15 March for S corporations | Electronic Funds Transfer |
| Schedule K-1 (Partner’s Share of Income, Deductions, Credits, Etc.) | Annually | 15 March | Electronic Funds Transfer |
| Form 1065 (US Return of Partnership Income) | Annually | 15 March | Electronic Funds Transfer |
| State Tax Returns | Annually | Varies, often 15 April | Electronic Funds Transfer |
| Estimated Tax Payments for Corporations | Quarterly | 15th day of April, June, September, and December | Electronic Funds Transfer |
Contractor payments
Papaya Global supports payments to contractors in USA. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. it is advised for contractors to reach out to their bank to confirm how foreign currencies are handled.
Bank Requirements
SWIFT/BIC
A SWIFT/BIC code an 8 to 11 character code which is an essential identifier used in international banking to specify the country, city, bank, and branch of a bank account.
| Example | ABCDUS33123 |
| Bank code | ABCD (4 letters) |
| Country code | US |
| Location code | 33 (numbers and letters) |
| Branch code | 123 (numbers and letters) |
Find a SWIFT code
Just fill in the country and account details below.
Check a SWIFT code
Enter a SWIFT/BIC to check it's correct and to find out which bank it belongs to.
KYC
The Know Your Customer (KYC) process is a set of guidelines allowing banks and other financial institutions to confirm the identity of the organizations and individuals they do business with, ensuring those entities act legally.
The KYC process is crucial in preventing identity theft, fraud, money laundering, and terrorist funding.
Here are the key elements of the KYC process:
- Customer Identification Program (CIP): This involves collecting basic information about the customer’s business operations and individuals. It includes the names of the company’s directors, business addresses, national insurance or social security numbers, company numbers, and so on.
- Customer Due Diligence (CDD): This involves understanding the customer’s business and assessing the risk level associated with the customer.
- Ongoing Monitoring or Enhanced Due Diligence (EDD): This involves monitoring the customer’s transactions and activities to identify any suspicious activities.
- Beneficial Ownership Verification: In 2016, the U.S. government issued a rule requiring banks to verify the identities of beneficial owners of legal entity clients such as corporations, LLCs, partnerships, unincorporated non-profits, and statutory trusts.
The exact practices of the KYC process can vary based on the risk profile of the organization and the regulations of the jurisdiction in which they operate.
Payroll payment Frequency
Monthly / Bi-monthly
Banking Regulations
- Anti-Money Laundering (AML) regulations
- Combating Financial Terror (CFT) regulations
- Tax Cuts and Jobs Act (TCJA) reduced the U.S. corporate income tax rate from 35% to 21% and provided a 100% dividends-received deduction (DRD) for certain offshore dividends paid by 10% or more-owned foreign subsidiaries.
- Global intangible low-tax income (GILTI) and base erosion anti-avoidance regimes effectively impose minimum taxes on certain foreign income and deductible payments made to related foreign parties.
- Penalties on newly inverted companies and obstacles to post-inversion tax planning: These were introduced by the TCJA to deter companies from avoiding U.S. taxes.
- Deemed dividends attributable to gains from the sale of CFC stock: This creates tax implications in the context of U.S. partnerships holding a CFC.
- Regulation (EU) 2021/1230 on cross-border payments in the European Union states that charges for cross-border payments in euro or in the national currency of participating Member States should be the same as for corresponding payments within a Member State. It also requires payment service providers to provide customers with clear information before a transaction.
- Directive (EU) 2015/2366: This directive requires the charges and exchange rate used in cross-border payments to be transparent. It also specifies the information to be given to customers.
International Banks
| Bank Name | SWIFT/BIC Code |
|---|---|
| HSBC Bank USA | MRMDUS33 |
| Deutsche Bank Trust Company | BKTRUS33 |
| Barclays Bank | BARCUS33 |
| BNP Paribas | BNPAUS3N |
| Credit Suisse | CSHIUS33 |
| UBS AG | UBSWUS33 |
| Standard Chartered Bank | SCBLUS33 |
| Royal Bank of Canada | ROYCCAT2 |
| Bank of China | BKCHUS33 |
| Mizuho Bank | MHCBUS33 |
| Sumitomo Mitsui Banking Corp | SMBCUS33 |
| Banco Santander | SVRNUS33 |
| ING Bank | INGBUS33 |
| Société Générale | SOGEUS33 |
| Bank of Tokyo-Mitsubishi UFJ | BOTKUS33 |
Local Banks
| Bank Name | SWIFT/BIC Code |
|---|---|
| JPMorgan Chase Bank | CHASUS33 |
| Bank of America | BOFAUS3N |
| Wells Fargo Bank | WFBIUS6S |
| Citibank | CITIUS33 |
| PNC Bank | PNCCUS33 |
| U.S. Bank | USBKUS44 |
| Truist Bank | BRBTUS33 |
| Regions Bank | UPNBUS44 |
| Fifth Third Bank | FTBCUS3C |
| TD Bank | NRTHUS33 |
| Capital One | HIBKUS44 |
| KeyBank | KEYBUS33 |
| Citizens Bank | CTZIUS33 |
| Huntington Bank | HUNTUS33 |
| M&T Bank | MANTUS33 |
| BMO Harris Bank | HATRUS44 |
| SunTrust Bank | SNTRUS3A |
| BBVA Compass Bank | BBVAUS33 |
| First Republic Bank | FRBBUS6S |
| Silicon Valley Bank | SVBKUS6S |
| Zions Bank | ZFNBUS55 |
| Comerica Bank | MNBDUS33 |
| Synovus Bank | FICOUS44 |
| People’s United Bank | PESBUS33 |
| Webster Bank | WENAUS33 |
| First Citizens Bank | FCNCOUS3 |
| Valley National Bank | VNBIUS33 |
| Associated Bank | ABGBUS44 |
| First National Bank | FNBOUS44 |
| Fulton Bank | FULTUS33 |
| Old National Bank | OLNBUS44 |
| Prosperity Bank | PRSPUS44 |
| Umpqua Bank | UMPQUS66 |
| Banner Bank | BANBUS66 |
| Trustmark Bank | TRMKUS44 |
| Hancock Whitney Bank | HWCUS44 |
| IBC Bank | IBCTUS44 |
| Ameris Bank | AMRSUS44 |
| Renasant Bank | RNSTUS44 |
| Central Bank | CENBUS44 |
| NBT Bank | NBTBUS33 |
| Banco Popular de Puerto Rico | BPPRUS66 |
| Provident Bank | PRVDUS33 |
| Commerce Bank | CBKCUS44 |
| TrustCo Bank | TRCOUS33 |
| Northwest Bank | NWBIUS33 |
| Peoples Bank | PEBOUS33 |
| First Financial Bank | FFBCUS33 |
| Pinnacle Bank | PNBKUS44 |
Payment Methods
The B2C payment tools available in the country include:
- “Pay to Card”
- “Global Digital Disbursements”
- “Cross-Currency ACH”
- Credit and Debit Cards
- Digital Wallets like PayPal, Apple Pay, Google Pay, Amazon Pay
- Bank Transfers (Electronic Funds Transfers or Direct Debit Payments)
- Mobile Payments
- Buy Now Pay Later Services like Klarna and Afterpay
- PreferPay ®
- Direct to Debit (enabled by Visa Direct)
- ACH
- manual check options
- Visa Direct
- Mastercard Send
- bank-to-bank P2P transfer scheme Zelle
- The Clearing House’s RTP real-time payments platform
- Bank-based payment methods such as ACH and wire transfers
- Other services like PayPal, Amazon, Moneygram, and prepaid cards from companies such as GreenDot and NetSpend offered by Ingo Money.
Checkbook also provides services such as ACH transfer, Mastercard Send and Visa Direct, or to virtual prepaid card accounts.
Cryptocurrency
In the United States, it is currently impossible to directly pay employees with cryptocurrencies, according to the U.S. Department of Labor regulations and the Fair Labor Standards Act (FLSA). The FLSA requires “payment of the prescribed wages, including overtime compensation, in cash or negotiable instrument payable at par.”
It has yet to be clarified whether cryptocurrency is considered functionally similar to foreign currency and, therefore, a negotiable instrument payable at par.
However, employees can have their wages, paid in U.S. dollars, converted into cryptocurrency before the funds are deposited into their accounts. The IRS states that virtual currency paid to an employee in exchange for services is considered wages for federal employment tax purposes.
The fair market value of virtual currency paid as wages, measured in U.S. dollars at the date of receipt, is subject to federal employment taxes and must be reported on Form W-2. Federal taxes, however, cannot currently be paid with virtual currencies.
Employers must also consider relevant state and local laws when formulating compensation plans. Many states specify how employers can and cannot pay wages. The volatility of cryptocurrency could cause problems with minimum wage and overtime laws.
Employers looking to participate in this new frontier may consider paying wages first in U.S. currency and then converting them to cryptocurrency if the employee chooses, free of charge to the employee.
As regulation of cryptocurrencies is still an ongoing process, Congress might pass legislation authorizing cryptocurrency to pay wages in the future.
Questions & Answers