I Don’t Pass Out Paychecks Early!

It never fails, someone needs to pick up their paycheck before the scheduled paycheck disbursement time.  We’ll say 2:oo pm on Friday.  You know that there is a reason you were told not to let the paychecks go early.  You know that if you let one employee do it, then every other employee will also have an emergency where they need to get theirs as well.  But this one employee is a really hard-worker.  And, she’s going out of town for the weekend as soon as she can pick up her check.  She deserves it, you reason to yourself.  I’m helping her out just this one time.  So, you tell her that you’ll do it just this once as long as she promises and pinky-swears that she won’t go to the bank before 2:00pm.

No, problem, right?  Wrong.  No matter how many times you preach it, someone also goes early.  1 of 2 things usually happen.  Their check will  be declined due to insufficient funds in the payroll account or the bank will go ahead and cash it while assessing a fee to your account.

You see, most companies don’t usually pay from the same account they keep their operating funds in.  The payroll account usually only maintains a small balance.  On payday, there is a bank transfer that has to happen in order for your tens of thousands of payroll dollars to be transmitted from the general operating account to the payroll account.  If someone tries to cash a check before this transfer, depending on how much money is kept in the account by default, you run the risk of creating an overdraft.  Then, you get a nice little telephone call from someone at your company.  I’ll let you figure out the rest.

I don’t pass out paychecks early for any reason.  It’s not my money; it’s the company’s.  I ensure that my employees know this up front and I cover this in orientation with any new staff members.

And, I remind those that ask me…every payday. 😉

Print Friendly, PDF & Email

Tagged As: , ,

Comments are closed.


    November 2017
    S M T W T F S
    « Sep