Pros and Cons of Paper Check Versus Those of Direct Deposit
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. 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 doesn’t mean every business should consider direct deposit. Your workers may still opt for 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!
One of the reasons paper payroll checks stand out is 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 banking info helps staff to limit who has access to this info. A staff can as well determine where and when to cash it. In addition, paper payroll checks also allow staff to cash their checks using a service as opposed to using 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. Also, there is the plus of saving money. The option of cashing a paper will shield employees from paying the charges related to opening a bank account.
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.
Regarding direct payments, they are advantageous because they are not vulnerable to damage, loss, or theft. Next, staff can get their payment even without going to the bank or workplace thereby saving time. As a worker, you do not have to wait for the working day to get paid. If need be, staff can split his/her payment into diverse 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.