In the olden days, the paper payroll check used to be the default method employees used to be paid through. In the early 1970s, however, direct deposit came overboard. Nowadays, most of the employees are paid via 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 read more here! This doesn’t mean every business should consider direct deposit. You may have employees who prefer 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!
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 bank information private gives the staff the power to control who can reach this information. A worker can also establish when and where 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. There’s also the bonus of saving money. 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. 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 an employee, you can receive your payment during holidays and at weekends. If necessary, employees can split their payments into various 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 other con of direct payments is, staff will use out of pocket money to cater to bank fees. Last but not least, for employers to make payments, they will need to have private banking details of their staff.
In order to know what works for you, weigh the cons and advantages of the two.