Paper Check Versus Direct Deposit
In the olden days, the paper payroll check used to be the default method employees used to be paid through. In the early 1970s, however, direct deposit came overboard. In these days, a variety of companies execute this service using direct deposit. When you read more here, you’ll learn and discover more about the good and bad sides of each so you can establish what works for you. You should read more here to get more info now! This does not automatically imply direct deposit suits every company. Your workers may still opt for checks. To tell what’s good for you, appear on sites like WITS Zen then press ‘view here for more‘ and check it out!
One of the reasons paper payroll checks stand out is employee privacy. Some employees aren’t willing to have their banking info leak to their employers and are reserved about opening about the same to you. Keeping bank information private gives the staff the power to control who can reach this information. A worker can also establish when and where to cash it. Additionally, paper payroll checks permit employees to cash this product with a service and not via a bank. As a boss, you are in a position of using a check stub generator other than having to rely on payroll software or homemade forms. Additionally, there’s the cost-saving pro. The alternative of cashing a paper protects workers from incurring costs of opening bank accounts.
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, employees don’t have to go to the office or bank to get their payment, hence saving them time. As an employee, you can receive your payment during holidays and at weekends. 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 next pro is that direct payments cause workers to incur the associated bank fees. Finally, employers need the private banking information of workers if they want to make payments.
In order to know what works for you, weigh the cons and advantages of the two.