In the olden days, the default method used in making employees’ payment was the paper payroll check. However, in the early 1970s, people started using direct deposit. These days, a big number of employees receive their pay via direct deposits. By clicking down this page, you will discover more about the pros and cons of each method so you can determine which will work for this company. You should read more here! 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!
Among the reasons that make paper payroll checks to be preferred by a variety of companies is that they offer employee privacy. Some employees are not willing to share their banking info and won’t want to share it with you. By ensuring bank info is private, workers have a say as far as who to access this info is concerned. An employee can also determine the time and place 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. Also, there is the plus 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. 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. Next, staff can get their payment even without going to the bank or workplace thereby saving 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 will require private banking info of employees in order to make payments.
In order to know what works for you, weigh the cons and advantages of the two.