In the olden days, the default method used in making employees’ payment was the paper payroll check. In the early 1970s, however, direct deposit came overboard. 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 read more here to get more info now! This is not to mean that the direct deposit method is proper for each business. 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!
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. By ensuring bank info is private, workers have a say as far as who to access this info is concerned. A staff can as well determine where and when 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 an employer, it is possible for you to use a check stub generator other than depending on payroll applications 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.
Regarding disadvantages, people can lose or damage a paper payroll check, implying you’ll have to cut them again. 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 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 next pro is that direct payments cause workers to incur the associated bank fees. Finally, employers will require private banking info of employees in order to make payments.
To tell what suits you, carefully reflect on the pros and cons of each.