Cha-ching!

Cha-ching! All of those early mornings and sacrificed weekends have paid off. You are finally nearing the end of your first pay period and ready to receive your paycheck. But oh no, there’s that boss again… with more questions and paperwork! This time you must decide how you want to receive your paycheck. What? Won’t I just get a check handed to me? Not necessarily.

There are three common payment methods: a paper paycheck, direct deposit, or a payroll card. Your employer may offer one or all three of these methods. If more than one method is offered it is your responsibility to choose which payment method will work best for you.

Paper Paycheck

Perhaps the most common and simple method for payment is a paper paycheck. This requires little explanation… you will receive a paper check with a paycheck stub attached. The paycheck stub explains important information and outlines the deductions made to the paycheck. It is your responsibility to cash or deposit the check.
 

Direct Deposit

With direct deposit, your employer will electronically deposit your paycheck into the depository institution account of your choice. Imagine not having to do anything with your paycheck and have it immediately available for your use…

Before direct deposit can occur, you must fill out a form authorizing the deposit to be made to your account (yes, one more piece of paperwork… but we promise it is easy and worth it). On payday, instead of receiving a check, you will only receive the paycheck stub.
 

Payroll Card

If you are paid with a payroll card, your pay is loaded onto an electronic card. Money is automatically deducted from the balance of the card when a purchase is made. Therefore, payroll cards can be used like a debit card. The difference is that payroll cards are not linked to a depository institution account. Also, payroll cards may have numerous fees associated with them, so it is important to receive a list of these fees before signing up to use a payroll card.

Remember, if you are able to choose which method to be paid, weigh the pros and cons and decide which option is the best for you. And look forward to your next payday… cha-ching!