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. 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 doesn’t mean every business should consider direct deposit. 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!
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. 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. Additionally, there’s the cost-saving pro. The ability to cash the paper means staff won’t need to pay to open 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.
When it comes to direct payments, there is the advantage of them not being susceptible to lose, damage, or theft. Next, employees don’t have to go to the office or bank to get their payment, hence saving them time. As a staff, you’ll not be required to keep waiting until holidays and weekends are over to access your pay. 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 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.
You should read more about the benefits and shortcomings of the two options to establish what does or does not work for you.