Today’s employers possess more options when the time comes to decide how to pay their W-2 employees. The common options are checks, direct deposit, and pay cards. The often-used first two options come with pros and cons to consider before you make any immediate decisions.
Physical Checks – Writing out or printing physical checks provides your business with a paper trail. Your employees do not need a bank account and they can hold their stubs. Yet the delivery will take longer periods of time when you mail the checks. A mail carrier or employee can also lose the checks.
Direct Deposit – Transfer funds instantly and reduce employee wait times with direct deposit. A bank does not typically charge fees when it receives transfers. Your accurate records make the process of rectifying any issues much quicker. Your employees, nonetheless, must have a bank account. Setting up new employee direct deposits may take a few weeks to finalize.