Payday is an exciting time for anyone with a job, whether it is part time or full time. They have worked hard for almost forty hours a week, maybe more, and want to see the fruits of their labor, how ever much money it will be. Depending on the company, people
will receive their pay a number of different ways, which is of course the decision of their employer. With all of the methods of payment available to companies having different benefits, it may not be a decision they can make in a split second. Knowing this, when companies are trying to decide how exactly they will pay their employees, they will likely look at all of the options to examine which is easy, quick and convenient.
Below, you can find more about the methods you can use to pay your employees and what each option entails.
Employees have been getting their pay in the form of a paper check for years. To many, this form of payment is convenient and actually preferred by employers and employees. The only problem with this method are the fees and that there is a chance that the check could be lost in the mail or stolen. This will result in the company having to pay an extra fee for a stop payment to be placed on the first payment, the check to be reprinted and then sent out to the employee again.
Over the past few years, direct deposit has been increasingly popular with employers. This is mostly because they are able to cut costs that are associated paper checks and use the money they are saving for other things the business may need. This option is also beneficial to the employees because it is convenient and is not as much of a hassle as a paper check. Instead of going to the bank and waiting in line to deposit their check every time they get paid, the money is right there in their account on payday, ready to be spent however they please.
This option is one that only recently became available, but it has been very popular. A payroll card is similar to direct deposit, but instead of funds being deposited into a person's bank account it is deposited on the card. Many employees who do not have a checking or savings account or those who aren't willing to share their banking info prefer this method of payment. Again, the cost of paying employees is lowered because there is no printing or distribution fees associated with this method.
Payroll isn't always the easiest thing for business owners to make a decision about, but once all is said and done, they can relax. Each payment method has its perks, but the point is to make sure every employee is paid on time and given exactly the amount of money they earned. With this being something that can be accomplished using all three methods, it really just comes down to what the employer feels is right.