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. These days, a big number of employees receive their pay via direct deposits. 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! This does not automatically imply direct deposit suits every company. Your team may be inclined to 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! Learn more about this service here.
One of the reasons paper payroll checks stand out is employee privacy. 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. 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. Additionally, paper payroll checks permit employees to cash this product with a service and not via 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.
In regard to pros, paper payroll checks can be damaged or lost, meaning you’ll cut them another time. Also, paper payroll checks contain sensitive business info such as business name, address, bank routing number, and account number, posing risk to fraud. For more info about pay checks, check it out!
As far as direct payments are concerned, there is the plus of them not being exposed to damage, loss, 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 you wish, you’re allowed to split your payment into many 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.
You should read more about the benefits and shortcomings of the two options to establish what does or does not work for you.