W I Pay Tip of the Day – Direct Deposit

According to the State of Wisconsin, you can require your employees to be paid via direct deposit rather than a paper check.  We strongly recommend you move in this direction, if you haven’t already done so.   

One hundred percent direct deposit is the way to go:

  1. Data entry into your bookkeeping system becomes much more streamlined.
  2. You no longer have to wait for employees to cash their checks.
  3. Your employees no longer need to wait for their checks.
  4. No more checks that went through the laundry and have to be reissued.
  5. Your employees no longer need to go to the bank to cash their checks.
  6. Your bank account information is much more secure.

We had a client who terminated an employee.  This employee decided to give herself a little severance pay by creating a new check after she had cashed her original check.  The company’s bookkeeper contacted us and asked us why we gave that employee another check.  We were able to confirm that the check did not come from us and that it was fraudulent. 

Had the company paid that employee via direct deposit, she would never have had access to the company’s checking account or the owner’s signature and this would never have happened.

Contact us to get your company set up with direct deposit for all employees.