With the development of the banking system and technologies through time, people have many methods to exchange money today. This directly relates to transactions between employers and their employees. Nowadays, every employer has at least five methods they can use to settle up with their workers.
One of the ways to pay is a payroll check, and you can fill out the Payroll Check Template for each employee. This is a brief form that you can easily create and issue to your worker. The worker will then withdraw the money from the relevant bank.
Checks are a rather popular way to pay workers in the United States. Like with any other payment method, this one has its advantages and disadvantages briefly described below.
Your organization may have a significant number of workers. Imagine there are a hundred of them, and you have to sign all checks by hand. So, for large entities, it may not be the best method to pay; but for organizations with a small number of employees, it is quite acceptable.
If your worker is absent, but you need to transfer the money to them (for example, if they are sick or on vacation), you will not be able to settle up with them until they get back and take the physical check. Other payment methods (like a digital wallet or direct deposit) will work in such situations.
For workers, the main disadvantage is probably the ability to easily lose their check (or have it stolen). Also, you do not get the money directly to your card or in cash, but you have to visit a specific point where you can withdraw the money. Most of the time, you also need to cover a fee for such a service.
But there is a bright side to the checks for workers: paychecks can be used easily even if an employee has no bank account. Besides, checks allow employees to safe the confidentiality of their bank info in front of their employers.
If you have chosen this payment method for your organization but have never made any checks, you may find our guide below quite useful. We will show all the template’s parts and explain how to create the document.
Employees who have never received payroll checks for their work are also welcome to read the guide and see what items can be found in every check issued.
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In the check, you indicate just a few details that are still enough for your worker to get the money. This includes the worker’s name, the sum to pay, and the entity’s details. Every check must be signed by the responsible entity representative; otherwise, it will not be accepted by the bank or any other financial institution.
There are two ways of making checks: they can be either made with your laptop or PC and printed or handwritten. If you prefer the second option, you must always have a sufficient number of printed empty templates you can fill out at any moment.
If it is more convenient to use your laptop and create a check there, try our advanced form-building software to download the easy-to-use Payroll Check Template.
Indicate the Issuing Organization
To start, you should write the name of the organization that issues the check and pays to the worker. Indicate the account number below the name.
Write the Check Number and Date
On the right, you must specify the number of this specific check and the date when the organization is issuing it (typically, the date of signing).
Identify the Payee
You have to introduce the one who will receive the money. Place the recipient’s name in the “Pay to the order of” line.
State the Sum
You must enter the amount to pay on the right-hand side (the same line as the name in this template). Write the sum in numbers. Below, decipher it in words. If the sum presumes cents, write them with a slash in a way shown in the template.
Each check must contain the bank’s details: name, logo, or address sometimes — depends on the check. Insert them on the left if you have nothing there.
Sign the Check
Your signature must be present on the check. Leave it in the designated line. Write your name and title as well.
Complete a Pay Stub
Below the check, you may see a pay stub that defines how much the worker has earned in a certain period, what has been deducted, and what the net sum to pay is. Fill out the stub with the demanded info.
You can give a copy of it to the employee, so they also understand the complete picture. Besides, you must keep this paper in your archives to prove the costs related to the worker’s earnings (that are your organization’s costs at the same time).
Pass the Check to the Worker
Your worker should be able to withdraw the money using this check, so you should pass the check to them when it is ready.
The worker then will fill out the backside of the Payroll Check Template when they arrive at the bank. There, they will leave their signature, write their name and account number, and insert numbers describing how to distribute the money (what will be issued as cash and what will go to the account).
You, as an employer, may not necessarily use paychecks. There are alternative methods, and only you will define what is more convenient and choose the method. Among other methods are cash, direct deposit, mobile wallets, and pay (debit) cards. They all have their advantages and disadvantages, so choose wisely before accepting any of those methods in your organization.