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. Nowadays, most of the employees are paid via 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 read more here! This doesn’t mean every business should consider direct deposit. 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 are not willing to share their banking info and won’t want to share it with you. Keeping banking info helps staff to limit who has access to this info. An employee can also determine the time and place to cash it. Besides, paper payroll checks make it possible for workers to use a service when cashing their checks instead of doing it through 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.
When it comes to direct payments, there is the advantage of them not being susceptible to lose, damage, or theft. Next, employees don’t have to go to the office or bank to get their payment, hence saving them time. As a worker, you do not have to wait for the working day to get paid. If need be, staff can split his/her payment into diverse 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 disadvantage of direct payments is that employees have to pay the related bank charges using their own money. 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.