Why Businesses Choose to Cash Their Payroll Checks Versus Mailing Them Out
Business checks with photographs of kittens and puppies on them isn’t just as classy as a regular blue slip, but if you run a pet store or an animal clinic, and in particular if you do pet insurance, then it’s usually not a very good idea to have very cute or clever business checks – unless you work in the animal welfare business or run a facility for animals. Kittens and puppies are adorable, yes, but when you have to do a check on someone that has had some felonies, or had some animal cruelty convictions, chances are good you’re not going to want to do business with that person anyhow. It is always safer, of course, to deal with someone that has a clean record of being a good citizen, than one that has had some business problems. And for the record, if you find a cute photo on a business check and the person doesn’t have a clean criminal record, then maybe you should just skip the check and go with the easier, safer option: a social security number.
Many accounting companies may offer their employees business checks with photographs on them, but not all do. Accounting software programs have made it easy for companies to offer their employees’ paychecks electronically, and many business checks have been issued by software programs, since they can be printed digitally. When you need to do a basic accounting check, however, you may have to go the old route of opening up a paper copy of your paycheck, going to the cashier, and presenting it to her with a printedout from your company’s accounting software program. There is nothing wrong with this, and it certainly beats waiting all day for your check to come in the mail. Also, when you pay your employees’ wages electronically through a payroll cash advance, it is much faster, and more convenient, than presenting your check personally. Plus, companies may not charge you any more for the electronic check – it is a credit card, and they will charge for the amount of money that is drawn from your credit card.
Electronic checks are also much safer than cash when paying employees. When you pay someone cash, there is always the chance that the other person might get hold of the money before you do. If your employee does not get hold of the money you have cashed in, then you could be in big trouble with the IRS. Also, if your business checks are for an important customer, then the customer may not get hold of their checks quickly, which means that you could run into problems with the other party as well.
A company that offers electronic filing of payroll checks makes things a lot easier for the business owner, as well. By saving time, avoiding paper, and eliminating chances of human error, the business owner will save a lot of headache in the end. The business checks can be printed by the company when it is time to issue paychecks, which will eliminate the hassle of having to go back to your payroll department to collect the checks, re-certify the information, and issue the paychecks. This saves the business owner plenty of time.
There are many benefits to cashing a business check online versus mailing them out by hand. One benefit is convenience. When you mail out personal checks, you must mail them out at your own risk. There is always the chance that the recipient will deem your mail as junk mail, which means it will end up being returned to you. When you cashing business checks, there is no risk to the business or the recipient.
Another benefit to cashing business checks is the security level. When you mail out physical checks, you risk losing them or having them stolen if the recipient does not receive them. With electronic filing of your payroll check, your checks are safely protected and stored on secure online servers, which means that they cannot be accessed by others. Therefore, the security issue is eliminated in both cases.
There are many reasons why businesses choose to cash their payroll checks versus mailing them out. The most common reason is speed. When you order payroll checks from your payroll processor, you can expect speedy processing and payment, even with large amounts. If the business checks are mailed out by hand, the individual employee has to go through the entire process again, possibly adding his own delay to the process. If he happens to forget to remit payment, the company could face a wage garnishment. Therefore, it is often worth it to order the payroll checks electronically so the business owner does not have to worry about these things.
Businesses may also benefit when they cash their business checks online. Some companies may have higher security features for their personal checks than they do for their checks for payroll. The lack of a face-to-face transaction with a customer often results in less human error and fraudulent activity on the part of the processor. This means that the company’s information is more protected and therefore there is a lower risk of someone using the wrong information. It is also easier to make changes to a company’s data online without having to send out a new set of authorization code to every customer.