Author Topic: Pay  (Read 9034 times)

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bigozzy

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Pay
« on: March 06, 2012, 06:39:20 AM »
I was just looking at a thread in the Special Snowflake topic where there was an issue with picking up pay checks in the US.

I was then watching an old episode of 'Big Bang Theory' where Sheldon has a drawer full of un-cashed pay checks.

This made me think. For the last 30 years or so my pay (In Oz and the UK workplaces) has been paid directly into my account.

Out of interest: How common is it in other countries to physically pick up a cheque or be paid elctronically?

iridaceae

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Re: Pay
« Reply #1 on: March 06, 2012, 06:45:53 AM »
The US is going more and more to direct deposit. The hotel I work at was recently bought by a different company and they do not believe in paper paychecks anymore except for special circumstances (I got paper checks until my direct deposit was set up, for example).  Or you can get a refillable VISA card. Those are your choices. 

I'd hazard a guess that most if not all big businesses here in the US will go to direct deposit in the next 10 years or so.

bigozzy

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Re: Pay
« Reply #2 on: March 06, 2012, 06:59:33 AM »
Thanks.

I wonder if there would be any advantage to either employer or employee to stick with paper check payment?

iridaceae

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Re: Pay
« Reply #3 on: March 06, 2012, 07:04:37 AM »
We have a couple of anti-government conspiracy types working here who are all up in arms over their paycheck choices since apparently it's Evil and Big Brother will do..something; I have no idea what- if they get direct deposit. 

Jones

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Re: Pay
« Reply #4 on: March 06, 2012, 09:14:20 AM »
My last job and my current job are 99.9% direct deposit.

At my last job one of my coworkers closed his account and insisted on a papercheck because "I must've got hacked; they took my money." Come to find out he was in debt with the IRS and they took what they could find. So now he was trying to hide/spend anything he could so they wouldn't find it.

Another coworker from another branch stated she was unable to get an account in which she could get direct deposit, due to her poor credit. I'm not sure how they resolved that; sounded fishy to me.

cicero

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Re: Pay
« Reply #5 on: March 06, 2012, 09:31:50 AM »
I live in israel.

we've had direct deposits for... years and years. i think since the 1980s.

I do't know anyone here who gets paid in any other way.


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Outdoor Girl

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Re: Pay
« Reply #6 on: March 06, 2012, 09:37:30 AM »
When I started my first job in 1990, I had no choice but to have my pay direct deposited.  The company still issued cheques to those who wanted them but encouraged people to switch to DD.  It was much cheaper and less labour intensive for them.

One of my coworkers who was close to retirement refused to switch.  I think he was finally forced to accept DD because the equipment used to print the cheques died and wasn't replaced.
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dawbs

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Re: Pay
« Reply #7 on: March 06, 2012, 09:47:11 AM »
Thanks.

I wonder if there would be any advantage to either employer or employee to stick with paper check payment?
I worked for a company that 'accidentally' reversed deposits taht had been made into employees accounts REPEATEDLY.
I got nagged as to why I, as one of the tecchy people working in a tecchy place insisted on getting a paper check..
oh, probably because the people who looked at their online accounts on Friday and spent the $ that had bee deposited in them had overdrafts by monday.  More than once.

So I've been a little suspicious since then.
(there is the time/money savings for the employer to direct deposit)

The whole 'need credit to have an account' can indeed be true, it can be hard to direct-deposit to a savings account and not everyone is allowed a checking account.

There's also the reprehensible practice of putting the paycheck onto a debit card that's becoming increasingly common http://www.consumersunion.org/pub/core_financial_services/000920.html

Lynnv

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Re: Pay
« Reply #8 on: March 06, 2012, 09:49:34 AM »
Direct Deposit has been common since (at least) the 80s, when I first worked in banking.

There are, however, always going to be holdouts who do not want or cannot use direct deposit.  The reasons range from just being a bit stubborn and old-fashioned and liking to SEE the check to having some garnishment in place and fearing the agency holding the levy/garnishment will find the funds before they can be withdrawn, to having such horrid credit that no institution will open even a savings account.  There are folks who don't want a spouse (or ex-spouse) to see how much their paycheck is-either because they are hiding assets and income or because they are putting money away in savings on the sly.  And then there are the cases where the company has a record of messing up direct deposits and causing problems in the account-having a paper check in those cases means that (assuming the money actually exists) the recipient can go to the issuing bank and get cash and KNOW that there isn't going to be a problem down the road.

By the time I left banking (1999/2000), direct deposit was the most common way of getting paychecks from medium sized or large companies, regular retirement payments and Social Security.  Smaller companies, however, were still doing paper checks, for the most part.

My current company strongly encourages direct deposit.  When I was originally hired, about 65% of our employees were "Road" workers (fly home every weekend, otherwise on the road) and paper checks would be a huge hassle for the employees-so pretty much everyone had it.  The company was one of the very early adopters of direct deposit, according to the folks who have been with the company 20 and 30 years.
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Thipu1

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Re: Pay
« Reply #9 on: March 06, 2012, 11:30:11 AM »
Direct deposit has been available for many years here but, until my retirement I never made use of it. 
The HR area where I worked was notorious for 'forgetting' or 'misplacing' time sheets.  Several times I was short changed on the hours I worked and had to get the time sheets from our area to prove that I had worked the entire pay period instead of only half of it. A paper check received from RH and opened in their office made these problems much quicker to resolve.

In the early days of direct deposit there were also problems with banks.  These no longer exist although I still miss getting that check and making the deposit at the ATM.


WillyNilly

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Re: Pay
« Reply #10 on: March 06, 2012, 11:35:17 AM »
I have gotten direct deposit for at least the last decade (in the US).  My first office job didn't offer it though, as it was a very small office and the owners were very resistant to change.

I pretty much need DD now though as for the last 5+ years banks will only offer free checking if you have a very big balance at all times (like over $1k) or direct deposit.  Since I don't tend to hold $1k+ in my checking account at all times, and I refuse to pay for checking, I need direct deposit.

WhiteTigerCub

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Re: Pay
« Reply #11 on: March 06, 2012, 12:14:10 PM »
I work for a large corporation that has had the direct deposit option available for the last 10 years. My bank allows for a fee free checking account if I have direct deposit so it works out nicely.

Whenever I get checks now (for odd things) I cringe because I have to go to the bank to deposit it.  Most checks have a "not valid unless cashed within 180 days rule" so if I fail to cash it in a timely manner, the check pretty much is worthless. I'd need to contact the company who wrote me the check to resissue a new one.

The government has a ton of money in reserves from companies that had outstanding checks that people didn't cash. All the people need to do is request it from the government, if they know it exists, which many don't.

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camlan

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Re: Pay
« Reply #12 on: March 06, 2012, 12:35:07 PM »
In some states, you can't get a bank account if you don't have good credit. Most of those states require that employers have both the DD and paycheck option for their employees. You can't force someone to use DD if they have no bank account. An issue with lower, minimum wage employees and bank accounts is that many banks charge you to have an account--there's a small (around 10$ monthly fee). So some employees don't want to pay that--and a company can't force someone to get an account that will cost them money, just so the company can do DD. There are some Federal laws in place about paying employees that factor into this. The key thing is that companies have to have a payment method for their employees that does not cost the employee anything.

One small company I worked for didn't have DD because the payroll company they used charged 75 cents extra for each and every DD. When enough employees started complaining, they proposed to offer DD, at a 1$ charge per week per employee (we got paid weekly). No explanation as to where the extra 25 cents would go, so no one opted for that.

Most banks in the US offer some sort of benefit for using DD--a free checking account is the most common--but not all of them do.   

And of course, if you are hiding money because you owe back taxes or child support, DD is not the way you want to go.
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jmarvellous

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Re: Pay
« Reply #13 on: March 06, 2012, 01:58:41 PM »
I use direct deposit (U.S.) and in my department of up to 40 people (smaller now), only one person chose to get a paper check -- he'd been burned by direct deposit at a previous job and refused to switch. Now that he's gone, they only offer DD for full-time or part-time employees. I don't think contractors or freelancers have to do DD.

hobish

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Re: Pay
« Reply #14 on: March 06, 2012, 02:14:31 PM »

There are lots of reasons to not want direct deposit that has nothing to do with conspiracy theories or defrauding the government or your employer. Having their money exist only in electronic form is an issue for a lot of people - electrons and numbers on a screen are far from legal tender.
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