Why do payroll clerks, check signers and distributors have to spend a lot of time on payroll checks?

Issuing paychecks involves the following 5 steps:

1. Print paychecks.

2. Sign each check by authorized signer.

3. Stuff checks into envelopes and sort by certain way.

4. Distribute or post checks.

5. Every time a payroll check is lost or stolen, a clerk must submit a stop-payment order and issue a new check.

The best solution is direct deposit which can eliminate step 1, 2, 4 and 5 completely. You may still need to send pay stubs to employees so that they know the details of what they get paid or they can receive electronic pay stubs by email and print them out by themselves. As you can see, payroll processes can be completely paper-free. Direct deposit has been proven to be safe, confidential and fast. It poses rare problems and it benefits both employers and employees. More than 95% employees are satisfied with direct deposit and more than 80% large companies (100+ employees) use direct deposit. You may mandate all employees to use direct deposit but please check your state law before implementing this best practice as it may not be allowed by local laws.

             Main Menu            

1. In-House Payroll vs. Outsourcing

2. Accumulating Time

3. Payroll Deductions

4. Direct Deposit

5. Payroll Cycles

6. 401(k) Plan

7. Payroll Forms

8. Payroll Resources

News & Discussions:

Simple, Safe, Smart Ways To Manage Your Money

Getting paid. Paying bills. Buying things. Writing checks. For almost 40 years, electronic payments have been simplifying these activities. Some of the most common types of electronic payments are processed through the Automated Clearing House (ACH) network, including Direct Deposit, Direct Payment, and check conversion.

Social Security debit cards coming

In an effort to reduce the 700,000 lost or stolen checks the government reissues each year, the U.S. Treasury Department's Financial Management Service is rolling out a new program in which the 4 million Social Security recipients and people receiving SSI disability benefits who don't have bank accounts can opt to receive their payments in the form of a debit card.

Employer can't force use of direct deposit

Q: I help do payroll for a small company. The boss strongly encourages the employees to sign up for direct deposit of their pay, and most of the employees have been glad to comply. But a few insist on being paid by check.

Social Security facts to know if you're traveling

First of all, if you're not having your check sent directly to your bank, you may want to consider signing up for direct deposit. This would mean having your funds available to you even when you're not there to cash your checks. More than half of Social Security beneficiaries receive their checks through direct deposit. It is the method of receiving checks recommended by Social Security for convenience, safety and speed.