Paper Check Versus Direct Deposit
In the olden days, the default method used in making employees’ payment was the paper payroll check. In the late 1970s, nonetheless, the direct deposit was invented. In these days, a variety of companies execute this service using direct deposit. On this page, we’ll learn more about the benefits and disadvantages of both so you can determine which suits you. You should click here on this site now and read more now This doesn’t mean every business should consider direct deposit. Your team may be inclined to checks. To tell what’s good for you, appear on sites like WITS Zen then press ‘view here for more’ and check it out!
Employee privacy is one of the reasons why an array of companies opts for this product. A number of workers are reserved as far as revealing info about their banking is concerned and will not be ready to reveal it to you. Keeping bank information private gives the staff the power to control who can reach this information. A staff can as well determine where and when to cash it. In addition, paper payroll checks also allow staff to cash their checks using a service as opposed to using a bank. As the owner of the company, you can as well utilize a check stub generator and not have to depend on payroll solutions or homemade forms. There’s also the bonus of saving money. The option of cashing a paper will shield employees from paying the charges related to opening a bank account.
Concerning shortcomings, employees can misplace or damage a paper payroll check hence needing you to cut another piece. Also, paper payroll checks contain sensitive business info such as business name, address, bank routing number, and account number, posing risk to fraud.
As far as direct payments are concerned, there is the plus of them not being exposed to damage, loss, or theft. Next, staff can get their payment even without going to the bank or workplace thereby saving time. As a staff, you’ll not be required to keep waiting until holidays and weekends are over to access your pay. If necessary, employees can split their payments into various bank accounts. As far as shortcomings are concerned, direct payments need employees to have a bank account in order to receive payments, meaning they incur costs of opening bank accounts. The other con of direct payments is, staff will use out of pocket money to cater to bank fees. Last but not least, for employers to make payments, they will need to have private banking details of their staff.
In order to know what works for you, weigh the cons and advantages of the two.