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. By clicking down this page, you will discover more about the pros and cons of each method so you can determine which will work for this company. You should read more here to get more info now! This does not automatically imply direct deposit suits every company. Your workers may still opt for checks. To determine what works best for you, visit the homepage of websites such as this website known as WITS Zen then press the ‘view here!‘or the ‘click for more’ button for more info.
Employee privacy is one of the reasons why an array of companies opts for this product. 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 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 a boss, you are in a position of using a check stub generator other than having to rely on payroll software or homemade forms. There’s also the bonus of saving money. 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. 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. 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 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. When we talk of disadvantages, direct payments require that workers ought to possess bank accounts, something that comes with an additional cost. The other con of direct payments is, staff will use out of pocket money to cater to bank fees. Finally, employers need the private banking information of workers if they want 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.