How do you pay your employees? If you want to streamline your payroll services, you may want to consider the many advantages of offering direct deposit. Some companies even require direct deposit or offer employees the option of a direct debit card; both these options can greatly simplify payroll services overall.
1. Your Employees Will Prefer It
Most employees greatly prefer not having to go to the bank to deposit their payroll checks—and employees who do not want this service can still be given the option of a check. Having a scheduled deposit also means that employees can rely on getting their pay on time every time, and this can be very appealing to those who are busy.
2. You Can Balance Your Books Easily
Balancing your books can be very difficult if your employees never deposit their checks. While you might think that they would deposit them promptly, some employees simply procrastinate going to the bank. You may not realize that you're running low on funds if you have employees that haven't been keeping up on their deposits. Even if your employees do tend to deposit their checks on time, you usually won't see the deposit come out of your account immediately—and you'll need to track every deposit. With direct deposit, you usually only need to track a single large bank withdrawal.
3. You Reduce Administrative Time
Rather than having your employees wait for checks to be printed and handed out, you can have everything done through the banks. Simply checking, printing, and dispersing checks can be a bit of an administrative burden, and it generally has to be done every two weeks. Additionally, there will be requests for replacement checks and other similar issues that need to be dealt with.
4. You Eliminate Many Mistakes
Have you ever had a paycheck go to the wrong employee? This can be a disaster, especially if your company avoids discussing salaries in the office. Payroll run on direct deposit is largely run automatically and will avoid many of these issues. You won't need to double check which checks went into which envelopes, or be cautious when handing out each paycheck.
If your company cannot process direct deposit on its own, a payroll service may be your best bet. Not only will payroll services reduce your administrative burden, but they will also ensure that your payroll is done accurately and promptly every time.Share