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. 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 click here on this site now and read more now This is not to mean that the direct deposit method is proper for each business. Your workers may still opt for checks. To know which suits the most, ensure you go to websites such as WITS Zen then click here on the ‘click here for more’ or the ‘view here’ button so you can read more now!
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. Keeping banking info helps staff to limit who has access to this info. 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 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 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. 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 an employee, you can receive your payment during holidays and at weekends. If you wish, you’re allowed to split your payment into many bank accounts. Regarding the downsides, direct payments make it a must for staff to be in possession of a bank account, a thing that attracts an extra cost. 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.