Getting paid by cheque

EmmaJ_3

How uncommon is it nowadays to be paid by cheque???

I am employed by a small business (sole trader employing about 30 people) and we're paid by cheque. Unfortunately I can only get to my bank on my day off each week, Thursdays. So this month they didn't give me the physical cheque until last Friday, I worked all weekend (although the nearest saturday opening branch is about 40 miles away anyway) so won't be paying it in until today. We've coped but it is a massive PITA. I did end up going over my overdraft one month when I was ill and not on the ball (no excuse, I know).

Is it usual anymore? Is it in my employers interest to pay us by BACS? The way I see it he's getting to keep my salary for an extra few days each month before I can get to the bank, plus cheques take ages to clear now.

I've now been informed by the city centre branch that they do have a 24hour pay in facility which I didn't know about, so in future I'll just have to go down town on the week night I get paid, but still, if I could save the bus fare each month just to pay my salary in!!!

simpywimpy

Have a word with the other employees and see if you can make a joint approach to the boss to change his payment method. I would have thought it is costing him more to issue cheques than pay by bacs.

lisyloo

I would have thought it is costing him more to issue cheques than pay by bacs.

BACS is very expensive for small businesses.
I used to get paid by cheque and it was quite problematic for the reasons you say.

I would suggest asking your boss to investigate the options and costs and then you can discuss them.

It's a while ago but when we investigated it the cost of BACS was about £30-£40 per employee per month. That may well have changed but clearly someone has to do the research first before any decisions can be made.

whitewing

Why can't the boss just get internet business banking and do it like that for this particular member of staff (or all of them). I do for my (small number) of staff. Now with faster payment, it's probably in their account within a couple of hours.

It only takes the same amount of time to do as it would writing out a cheque. It also means cashflow is better as a boss, as you don't get people stockpiling cheques and cashing them willy-nilly. (We have students living at home, who used to lose their cheques!)

lisyloo

Now with faster payment, it's probably in their account within a couple of hours.

Perhaps they don't want the money to move quite so fast.

Most probably the answer is that they aren't aware of the grief it's casuing so haven't investigated alternatives.
So the solution is to communiate, explain the problems and positively suggest some solutions if possible. Internet banking is a good potential solution.
My experience is old so things might have moved on but my recollection is that BACS was very expensive but internet banking was a cost effective solution.

Tabby_Kitten_2

I get paid by cheque as well and had the same problems, in the end I changed banks (got a much better deal too) so as I could pay cheques in at the post office which is open from 7.30 until 6pm near me, whereas the bank is open 9.30 until 5pm, meaning I can pay it in on my way home or on the way into work.