Paper Check Versus Direct Deposit
In the years past, the paper payroll check was the default means of paying employees. However, in the early 1970s, people started using direct deposit. In these days, a variety of companies execute this service using 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 read more here to get more info now! This does not automatically imply direct deposit suits every company. 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!
Among the reasons that make paper payroll checks to be preferred by a variety of companies is that they offer employee privacy. 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 bank information private gives the staff the power to control who can reach this information. An employee can also determine the time and place 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 an employer, it is possible for you to use a check stub generator other than depending on payroll applications or homemade forms. There’s also the bonus of saving money. The ability to cash the paper means staff won’t need to pay to open bank accounts.
Regarding disadvantages, people can lose or damage a paper payroll check, implying you’ll have to cut them again. Also, paper payroll checks contain sensitive business info such as business name, address, bank routing number, and account number, posing risk to fraud.
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 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 next pro is that direct payments cause workers to incur the associated 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.