The Business payroll is an intricate document that must be prepared judiciously. It is a requirement if you are to pay your employees timely and accurately. However, after processing your business payroll, there is a still a matter of paying your employees.
The most popular choices are live payroll checks and direct deposits. These payment methods are excellent, but each has its specific sets of benefits and drawbacks. Therefore, in this article, we will explore the pros and cons of using each kind of payment strategy to select the payment method that would work best for you.
Business owners may prefer direct deposits to live checks because of the relative safety it might give. Typically, your business’s name, address, as well as your signature is contained on those business payroll checks. Also, your routing number and bank account number might be on them.
If an employee loses his/her business check, it might be detrimental to your business as your business funds might fall on the wrong hands.
Contrary to this, direct deposits eliminate the need for a business payroll check. Therefore, they ensure safety. Funds are transferred electronically as soon as you have successfully processed your business payroll.
Business owners who use direct deposits do not have to worry about been physically available at their business location on a payday. Receipts can be sent electronically alongside deposits directly into the bank accounts of the employee. With Business checks, the employer has to be physically present, therefore, eliminating comfort.
Business owners who use business payroll checks may have to withstand the burdens of printing checks and then physically distributing them to each employee. This requires a lot of time and added funds to purchase paper check stock. With direct deposits, flexibility is assured.
Employers can simply use electronically configured systems to process and send electronic deposits with a single click.
The Cost of managing each kind of payment setup of different banks may charge specific set up fees which can range from $50 to $149 for small businesses. Also, you may be charged a transaction fee for each transaction to every employee’s account. This may also range from $1.50 to about $1.90 per transfer. It might be expensive for some businesses.
Regarding Business payroll checks, it may only require employers to pay for printing supplies, stationeries, envelopes and paper check stock. This might be a significant amount but depending on the business, it may not be quite as much as the expenses incurred by using direct deposits.
Above all things, there is still a small matter of choices. Some employees might prefer direct deposits to live checks. Others might not even have bank accounts. Therefore, all of this must be taken into consideration before selecting your appropriate business payroll method.
Do you have employees who want to be paid with business payroll checks while others wish to be paid via direct deposits? No worries, we offer accounting and payroll services which will proffer an excellent business payroll solution to your needs. Contact us today at (212) 320-8191 or by email at firstname.lastname@example.org.
Urgent Tax Services
6009 16th Ave,
Brooklyn, NY 11204
Ph. (212) 320-8191
Fax (646) 626-6447