In the olden days, the paper payroll check used to be the default method employees used to be paid through. However, in the early 1970s, people started using direct deposit. 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 click here on this site now and read more now This does not automatically imply direct deposit suits every company. You may have employees who prefer 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. Some employees aren’t willing to have their banking info leak to their employers and are reserved about opening about the same 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 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. 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. Paper checks also contain sensitive business info like address, account number, name, and bank routing number, exposing you to scam.
When it comes to direct payments, there is the advantage of them not being susceptible to lose, damage, or theft. Also, it will not be necessary for workers to go to their workstations or the bank to access payments, a thing that saves 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 other con of direct payments is, staff will use out of pocket money to cater to 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.