Have question about paychecks

[barkley]

this kind of thing can even come up with direct deposit. dh and i both worked for employers who had the same 'pay dates' and direct deposit was required of employees. one interpreted the law that they did their 'run' with the bank (in other words 'paid the employees') such that funds were deposited and AVAILABLE on the designated payday, the other interpreted that so long as they had done the run, if there was a weekend or holiday and the bank made the funds unavailable the employer was not responsible. it made friday paydates a pain-my employer did their run thursday nite so it was actualy available friday , dh's waited till friday so it was'nt available until monday (and if monday was a bank holiday, sometimes not till tuesday).

i think in california the only time a check or the cash equivilent to pay has to be in an employees hand on a certain day is when you terminate. failing to do so can result in the labor board requring the employer to pay full pay for each of the days an employee had to wait for it (this was why our payroll clerks always were the first to knew who was getting terminated-bypassed direct deposit entirely and had to have a hand issued check for the boss to deliver upon firing).

 

[Cindy's Mom]

DH works for the State (so do I but different agencies) While most state employees have direct deposit, there are a few who don't. DH's agency in an effort to get 100% participation now mails their actual check on payday. You can't even get it in the office anymore. Needless to say they are the state agency with the highest direct deposit enrollment. I still don't see the arguement against it. There is nothing better than knowing your money is in the bank where it belongs. Whether you are home sick on payday or at WDW.

 

[rayelias]

Well, it does cost. In fact, the smaller the company, the more it actually costs per check. The large companies accounts are so big that the bank usually waves the fees for this.

In my company's case, our previous owner was a partner in a new, local bank and, for that reason, the direct deposit fees for waved. However, until that time, the company did kind of "balk" at paying the fees.

So there is *something* to that, I guess.

It's not only the fees, but there are also issues with bank reconciliation(s). Some banks handle direct deposit differently than others. Usually, from the employer perspective, the direct deposit paychecks are one lump debit. Unless all employees are direct deposit, and on the same system, it is a huge hassle to direct deposit.

And for the person that mentioned "float", unless you're dealing with tens of millions of dollars, there's no benefit to "floating" payroll for a day or two.

 

[ameraumi]

You can always go to www.laborlawtalk.com and ask there. There are some very helpful people that know the state laws!

I always thought that the check had to be physically available on stated paydays.

 

[DisneyfeverTN]

It's not only the fees, but there are also issues with bank reconciliation(s). Some banks handle direct deposit differently than others. Usually, from the employer perspective, the direct deposit paychecks are one lump debit. Unless all employees are direct deposit, and on the same system, it is a huge hassle to direct deposit.

And for the person that mentioned "float", unless you're dealing with tens of millions of dollars, there's no benefit to "floating" payroll for a day or two.

I do the bank recs for our company and we have over two thousand employees. It is not a problem for me to do the bank rec with both paper checks and direct deposits. Not a problem at all. And the float makes a difference in the available cash for a company. So, even for a smaller company it does make a difference. We deposit paychecks into over 50 different banks for our employees. Their money is always there on payday, which is every other Thursday. Everyone is very happy with it. I would love it if all of our employees could be on direct deposit. We currently only offer it to mgmt. It is so much easier for everyone. Also, when a paper check is issued, a company's account number and routing number are printed on the check. With direct deposit, none of our bank info is on the check. We also don't print social security numbers on the check stubs.

 

[rayelias]

I do the bank recs for our company and we have over two thousand employees. It is not a problem for me to do the bank rec with both paper checks and direct deposits. Not a problem at all. And the float makes a difference in the available cash for a company. So, even for a smaller company it does make a difference. We deposit paychecks into over 50 different banks for our employees. Their money is always there on payday, which is every other Thursday. Everyone is very happy with it. I would love it if all of our employees could be on direct deposit. We currently only offer it to mgmt. It is so much easier for everyone. Also, when a paper check is issued, a companies account number and routing number are printed on the check. With direct deposit, none of our bank info is on the check. We also don't print social security numbers on the check stubs.

You know, I wasn't even thinking about floating the checks for available cash - that's an excellent point. I assumed the reference was to pick up an extra day or two interest on the money.

I agree, it would definately be VERY nice if everyone would be on direct deposit. It does make things MUCH easier.

 

[Allison]

It's not only the fees, but there are also issues with bank reconciliation(s). Some banks handle direct deposit differently than others. Usually, from the employer perspective, the direct deposit paychecks are one lump debit. Unless all employees are direct deposit, and on the same system, it is a huge hassle to direct deposit.

And for the person that mentioned "float", unless you're dealing with tens of millions of dollars, there's no benefit to "floating" payroll for a day or two.

It's never been a problem for us to do bank reconcilations. I disagree about float-float can be especially beneficial for small companies who don't have a lot of extra cash sitting around.