In the olden days, the paper payroll check used to be the default method employees used to be paid through. In the late 1970s, nonetheless, the direct deposit was invented. These days, a big number of employees receive their pay via direct deposits. 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 is not to mean that the direct deposit method is proper for each business. 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!
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. A staff can as well determine where and when 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. Additionally, there’s the cost-saving pro. The alternative of cashing a paper protects workers from incurring costs of opening bank accounts. Keep reading this article for more info.
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 a staff, you’ll not be required to keep waiting until holidays and weekends are over to access your pay. If necessary, employees can split their payments into various 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. 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.