Getting Paid On Time
Some insights, rants, and tips

One of the most frustrating things a worker can experience is not getting paid on time. This isn't a particularity Jewish problem, it is just a general problem. You tell your client or employer what you expect to be paid and when and then you wait and wait to be paid. And, nothing happens! You don't want to scare off your clients by demanding the money owed to you immediately either because you know you will be paid (someday) and you don't want to loose a client, you have sympathy for your client, or you are just uncomfortable broaching the subject.

I have plenty of friends who have waited for payment from an employer for months or even years. Sadly, nearly all worked in [you know where] and those that waited for years are, sadly, still waiting if they haven't thrown in the towel. Until recently, I had no conception of the problem and the scope of the issue. But, as of late, it seems that nobody wants to spit up the money they agreed to pay voluntarily. The real chutzpah, is that some of those who haven't paid up bargained me down to a lower price than I should have accepted. (Note to self: be brave and tell them you are raising the price).

Well, despite the fact that I am generally a strong person, I am definitely a weakling when it comes to demanding payment and demanding it now. I prefer to function on an honor system where we agree on a price and I have the money waiting for the provider as soon as the job is done. If I get any credit in olam ha-ba for fulfilling an important mitzvah, this will be it. I can't recall ever paying a service provider late, nor can I recall ever having a provider having to face the discomfort that can come from having to ask for payment. While I find myself unable to remember to say birchat ha-mazon (or even if I said birchat ha-mazon), I never seem to forget a bill and can probably name the due date of all of our bills in my sleep. It must be a quality that comes natural to financial people.

When I worked for a regular employers, getting compensated in full and on time was never was troublesome. But, once I started doing more informal types of work to bring in a little extra while I stay home to raise a family, getting compensated started to get ugly. But, recently, I finally got tired of dealing with late payments, no payments, and waiting patiently for the subject of payment to resurface, and I took matters into my own hands and combating the problem.

Here are some of my tips (some are actually working, others are theoretical and should work, but I have yet to find out). Here they are:

Make payment the first order of business

• When you report to a place of work for the first time, ask up front for your W-4, W-9, and your timesheets. This makes it clear that you mean business. Hopefully it will move you to the head of the class for payment if not everyone is getting paid that month.
• If you are being paid for services by the month, ask for payment at the beginning of the month. If you are are unsure what the total amount due for the month will be, charge a base rate for the month and bill the remainder or issue a refund at the end of the month. Just try to keep good estimations.

Get It in Writing

• Write up formal agreements. It might be uncomfortable, especially if you are friends with the person, or part of a similar social circle, but it shows you mean business and will help facilitate that in the long run. And, if you are not getting paid, you will have the documents you will need for any litigation (G-d forbid).
• Use written invoices in addition to oral agreement. Somehow written notices get noticed while what you tell someone orally goes in one ear and out the other.

Get Tough

• If you are not comfortable asking for payment and being strong about it, get in front of the mirror and practice asking just like you might practice a job interview or practice giving a public speech.
• Remember that working is for the purpose of making money. If you want to be involved with a chessed project, there are plenty of chessed projects out there. Don't make work a chessed project or you will end up with trouble from nearly every client since word flies quick.
• Don't offer too many discounts. While discounts may bring in sometimes the clients that are unwilling to pay market rate are not worth the trouble they bring and if they talk, which they often will, you may find that nobody wants to pay market rate and the only person who end up with the short end of the stick is you.

Readers, I'd love to hear your tips (or rants) if this is an issue you are dealing with.