Direct Deposit
Through direct deposit, employee paychecks are electronically deposited into the employee's chosen bank account on the scheduled payment date.
Direct deposit offers employees prompt payment and immediate access to funds even if they're not in the office on the day of payment. It is more secure than receiving a physical paycheck that could be delayed if it's lost--or stolen and cashed before reaching the bank.
Even though payroll departments take prompt action and stop payment at the bank, banks will not guarantee stop payments for the employer if the check has already been presented for payment. In such cases, the employer is forced to collect any reissued payment from the employee. It is the employee's choice to receive a check instead of the more secure method of direct deposit, and the employee bears the responsibility of lost and stolen funds.
