Many employers might think of printing payroll checks as a task from a bygone era. In some ways, they’re right. Direct deposit has surpassed paychecks as the preferred payment method in the United States, and pay cards are growing in popularity.
However, printed checks still have their place in payroll. In fact, some states require employers to provide paychecks to employees who prefer to be paid that way. Understanding the process of printing and delivering checks is essential to complying with these regulations.
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What is a payroll check?
A payroll check is a printed document that employers can use to compensate employees for their work. The employees on the receiving end can either cash the check or deposit it in their bank account. For many years before the advent of electronic pay, this was the primary way workers were paid.
Included with a payroll check is a pay statement or pay stub, which shows the employee’s gross wages, deductions, net pay and other pertinent information. Specific requirements for pay statements vary by state.
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Compare PackagesPros and cons of printing payroll checks
Printing payroll checks may be economically feasible for the smallest businesses where all employees work in the same location and checks can be delivered in person. Additionally, some employers don’t like the deadlines associated with direct deposit and feel that paychecks give them more leeway.
However, the traditional paycheck has some drawbacks, including the following:
- Card stock, ink, stationary and postage increase payroll costs.
- Lost or stolen paychecks pose a security threat.
- It is sometimes inconvenient for employees to cash checks or deposit them.
Why do some employees prefer printable payroll checks?
Electronic pay is desirable to many employees today, but not everyone. Two common reasons people need or want paper checks instead of direct deposit include the following:
- Lack of a bank account
Many American workers don’t have a bank account and, thus, cannot be paid via direct deposit. Paychecks are necessary for these people to access their earned wages, although pay cards may be an option in some circumstances. - Security or privacy concerns
Some employees may feel uncomfortable giving an employer their bank account and routing number. They prefer a paycheck because they think it safeguards their financial information, despite the inherent risk of a lost or stolen check.
What employers need to create payroll checks
The essentials for printing payroll checks include:
- Printer
- Check stock
- Magnetic ink character recognition (MICR)
- Envelopes and stamps
Of these items, MICR is probably the most important because banks use magnetic readers to process payroll checks. Without MICR, the check is not as secure and the bank may take longer to complete the transaction or charge employers an additional fee.
Print high-quality payroll checks
Employers who manage payroll using RUN Powered by ADP® have the choice of either preprinted checks or blank checks. Both are designed with multiple security features to help prevent duplication and fraudulent checks. Also included are double window envelopes with a tinted inside pattern that completely secures the confidential information on the checks.
Alternatives to printing payroll checks
Instead of printing paychecks themselves, employers can rely on a payroll software provider to handle it for them. ADP, for instance, will automatically print paychecks and deliver them to employees the next business day.
Payroll providers also offer electronic alternatives to paychecks, like direct deposit or pay cards, which are popular with employees today. They like having faster, more convenient access to their pay and the ability to manage their finances electronically.
Ultimately, electronic pay is a win-win situation. Employers cut costs associated with paychecks and improve employee engagement in the process.
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Download NowFrequently asked questions about printing payroll checks
Can I print payroll checks on regular paper?
Regular paper is not appropriate for payroll checks and may pose security risks. Employers printing their own checks need to purchase card stock.
Can I get payroll checks from my bank?
Employers usually can obtain card stock from the bank that holds their payroll account. They may also place an order through their payroll service provider or an office supply store.
Do I need a special printer to print payroll checks?
Securely printing paychecks requires a printer compatible with card stock and magnetic or MICR ink.
Can you handwrite a payroll check?
Employers can handwrite a paycheck. However, they must remember to record it in their payroll system so the wages paid are reflected on the employee’s Form W-2.
How do banks verify payroll checks?
Banks verify payroll checks with magnetic readers, which is one reason MICR ink is preferred. Paychecks not printed in magnetic ink may incur additional fees and longer processing times.
This guide is intended to be used as a starting point in analyzing how to write payroll checks and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.
