What perplexes you?

[Doombot]

The fact that If I deposit a check I have to wait two days before I can access the new amount via my bank card.

However if I wanted to, I could deposit the check, withdrawn the entire amount of the new check, receive the cold hard cash, turn around the deposit the money and be able to have access to the money instantly.

 

[BlueCross]

*wonders how long photoshopping without remuneration takes...*

[ShadyGuy]

Actually it perplexes me that people use checks at all. They're so outdated. Why do a lot of companies in the US pay their employees by checks anyway? Here in the Netherlands they simply wire the money straight to the employees bank accounts. Much easier for both sides imo.

[Doombot]

*wonders how long photoshopping without remuneration takes...*

I shall do it tonight. I did a version with N.B.'s face but it didn't look Bluecross worthy.

[Doombot]

Actually it perplexes me that people use checks at all. They're so outdated. Why do a lot of companies in the US pay their employees by checks anyway? Here in the Netherlands they simply wire the money straight to the employees bank accounts. Much easier for both sides imo.

Because it costs extra. Extra enough where it's bad to use it? No. Not really... but some companies don't want to spend the extra bit per pay period.

[Brugdor]

Actually it perplexes me that people use checks at all. They're so outdated. Why do a lot of companies in the US pay their employees by checks anyway? Here in the Netherlands they simply wire the money straight to the employees bank accounts. Much easier for both sides imo.

And yet I always get stuck behind the freakin lady that insists on paying with a check at the grocery store. 

[BlueCross]

Actually it perplexes me that people use checks at all. They're so outdated. Why do a lot of companies in the US pay their employees by checks anyway? Here in the Netherlands they simply wire the money straight to the employees bank accounts. Much easier for both sides imo.

Float.

No float if money goes directly to bank.

With a 'big' payroll, it can add up.

[Doombot]

Ah yes... the boss of one of my friends used to wait to pay him employees. Sometimes he 'due to unforeseen' circumstances... the paychecks would be delayed and not arrive till after a major holiday. Like 5 days later. He did that to increase the interest on his money.

I'm not sure the interest is worth angering 200+ people several times over the year.   :dozey:

[Petrarch]

The reason is because a cheque is just a piece of paper at the end of the day. The bank has no way of knowing if the other bank will actually pay out on the cheque until they send it for verification and approval. That's why they won't allow people to draw upon it straight away, not least for the fact that if it bounces the bank will hold you responsible for it. When you can draw on it there's actually times where they still haven't received the cash. That's what's called the 10 day rule here. Whereas if the deposit is cash, they know it's there and can verify it straight away.

[Hoopy Frood]

Actually it perplexes me that people use checks at all. They're so outdated. Why do a lot of companies in the US pay their employees by checks anyway? Here in the Netherlands they simply wire the money straight to the employees bank accounts. Much easier for both sides imo.

Because it costs extra. Extra enough where it's bad to use it? No. Not really... but some companies don't want to spend the extra bit per pay period.

Actually, it doesn't cost extra. The labor, printing, paper, and sometimes postage costs for most companies exceed the small charge that any bank might levy to do direct deposit. Most companies of any significant size in the U.S. offer direct deposit as an option.

However, a smaller company might want the float, particularly when it's only a few people in the operation.

[Doombot]

It does cost extra.

They use an outside agency to do the payroll.

The payroll company charges more to do our payroll if we want to use direct deposit for our employees.

[Hoopy Frood]

It does cost extra.

They use an outside agency to do the payroll.

The payroll company charges more to do our payroll if we want to use direct deposit for our employees.

Maybe it costs extra for your company, but companies with their own payroll department don't necessarily have that concern.

[Solwyn]

Yeah I work for the state. They recommend everyone use direct deposit for a lot of reasons, but we have not only our own internal payroll system but an internal auditing system.

So go figure.

But yeah, payroll companies only charge more for direct deposit because it's a "bonus" feature. It's smart because it usually costs the payroll company less over time. According to my friend, a CPA, there's an initial charge to get everything set up with the bank as well as a basic cost for each paycheck but overall after all the costs add up his company found it to be about 73% cheaper to just do direct deposit, and the companies usually preferred it because float is nice but there are penalties to late deposits that the company could be held liable for, so they prefer to do it directly.

[AcdQueen89]

i get paid cash.

i also get paid for spending an hour in the back room with my bf :there is no shrug smilie:

his mom got me the job.

[Bubonic]

Just when I think I'm too old for hormones to overly effect me, AcdQueen89 posts something.  I'm going to the special hell.

I get paid by direct debit to my bank account.  There is no option for me to get paid any other way.  Admittedly I work for a rather large organisation (The Commonwealth Government of Australia).  Also, all account keeping fees that I am charged for the bank account into which my salary is deposited are tax deductible.