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. 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 click here on this site now and read more now This is not to mean that the direct deposit method is proper for each business. 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!
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 banking info helps staff to limit who has access to this info. 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. Additionally, there’s the cost-saving pro. 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. Paper checks also contain sensitive business info like address, account number, name, and bank routing number, exposing you to scam.
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 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 next disadvantage of direct payments is that employees have to pay the related bank charges using their own money. 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.