Pros and Cons of Paper Check Versus Those of Direct Deposit
In the years past, the paper payroll check was the default means of paying employees. In the early 1970s, however, direct deposit came overboard. Nowadays, most of the employees are paid via 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!
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 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. There’s also the bonus of saving money. The alternative of cashing a paper protects workers from incurring costs of opening bank accounts.
Concerning shortcomings, employees can misplace or damage a paper payroll check hence needing you to cut another piece. Paper checks also contain sensitive business info like address, account number, name, and bank routing number, exposing you to scam.
Regarding direct payments, they are advantageous because they are not vulnerable to damage, loss, or theft. Next, employees don’t have to go to the office or bank to get their payment, hence saving them 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. As far as shortcomings are concerned, direct payments need employees to have a bank account in order to receive payments, meaning they incur costs of opening bank accounts. 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.
To tell what suits you, carefully reflect on the pros and cons of each.
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