Workful offers payroll solutions, and yes, it does support paying employees by check.

This means businesses utilizing Workful can generate and print physical checks for their workforce, providing a traditional and widely accepted method of compensation.

For many businesses, particularly those with employees who prefer or require paper checks, or those without direct deposit capabilities, this feature is a crucial component of their payroll process.

It ensures flexibility in how employees receive their wages, accommodating diverse needs within a company’s team.

Table of Contents

Navigating the Nuances of Workful’s Check Payment System

Understanding how Workful facilitates check payments goes beyond simply knowing it’s an option. It’s about optimizing the process for efficiency and compliance. Workful designs its platform to streamline payroll, and that includes check printing. You’re not just printing a generic check. you’re leveraging a system that integrates tax calculations, deductions, and accurate net pay figures directly onto the check stub, which is a major time-saver for businesses. For instance, in a 2023 survey by the American Payroll Association, nearly 20% of employees still prefer receiving a paper check, highlighting the continued relevance of this payment method.

Setting Up Check Payments in Workful

Getting started with check payments in Workful is designed to be straightforward.

The platform guides you through the necessary steps.

Company Information: Ensure your company’s legal name, address, and Employer Identification Number EIN are accurately entered into Workful. These details are critical for compliance and appear on all checks.
Bank Account Integration: You’ll need to link your business bank account to Workful. This is the account from which the funds for the checks will be drawn. Workful uses secure protocols for this integration, often involving micro-deposits for verification.
Employee Profiles: Each employee’s profile must be complete, including their full legal name, address, and any specific pay rates or deductions. Workful uses this information to populate the check details correctly.
Payroll Settings: Within your payroll settings, you’ll confirm that check payment is an enabled option. You can also specify default payment methods for employees, though individual employees can often override this.

The Check Printing Process: From Calculation to Paper

Once your setup is complete, the actual check printing process in Workful is a few clicks away.

Run Payroll: Initiate a payroll run within Workful. The system will calculate gross pay, taxes federal, state, local, and any pre-tax or post-tax deductions like 401k contributions or health insurance premiums for each employee.
Review and Approve: Before printing, you’ll have the opportunity to review all payroll calculations. This is a critical step to catch any errors before checks are issued. Workful provides a clear breakdown of each employee’s pay.
Print Checks: After approval, Workful generates the check files. You can then print these checks directly from your office printer using compatible check stock. Workful often provides templates or guidance on the correct check stock to use to ensure proper alignment and security features.
Record Keeping: Workful automatically keeps a digital record of all printed checks and payroll runs, simplifying reconciliation and year-end tax reporting. This digital trail is invaluable for audit purposes and historical data analysis. According to the IRS, businesses should retain payroll records for at least four years after the tax becomes due or is paid, whichever is later.

Security Features and Best Practices for Check Payments

While convenient, check payments require attention to security to prevent fraud and ensure financial integrity. Workful offices

Secure Check Stock: Always use high-security check stock that includes features like watermarks, microprinting, security borders, and chemical alteration protection. These features make it harder for checks to be counterfeited or altered.
Secure Storage: Store blank check stock in a locked, secure location. Never leave blank checks accessible. Similarly, once printed, keep signed checks secure until distribution.
Segregation of Duties: If possible, separate the responsibilities of payroll processing, check printing, and check signing among different individuals. This internal control helps prevent fraud. For instance, a small business might have one person prepare payroll, another print checks, and the owner sign them.
Bank Reconciliation: Regularly reconcile your bank statements with your Workful payroll reports. This helps identify any discrepancies, uncashed checks, or fraudulent activities promptly. Many businesses perform this weekly or bi-weekly.
Positive Pay: Consider implementing Positive Pay services with your bank. This fraud prevention service allows your bank to match checks presented for payment against a list of checks you’ve issued. If a check doesn’t match, the bank flags it for your review. This can significantly reduce the risk of check fraud, which cost businesses an estimated $1.8 billion in 2022, according to the Association for Financial Professionals.

The Advantages and Disadvantages of Paying by Check with Workful

While Workful offers the flexibility to pay by check, it’s essential for businesses to weigh the pros and cons to determine if it’s the most efficient and secure method for their operations. Every payment method has its trade-offs.

Advantages of Workful Pay by Check

Employee Preference: Some employees, especially those without bank accounts the unbanked or underbanked population, which still represents about 4.5% of U.S. households according to the FDIC’s 2021 survey, or those uncomfortable with direct deposit, prefer physical checks. This caters to a wider demographic of potential employees.
Immediate Access Once Cashed: For employees who cash checks at their bank or a check-cashing service, the funds can be accessible relatively quickly, sometimes even on the same day.
Tangible Record: A physical check provides a tangible record of payment for the employee, which can be reassuring. The attached stub also offers a detailed breakdown of earnings and deductions.
Control for Employer: Employers retain more control over the distribution of funds until the check is actually cashed. This can be beneficial in certain situations, though it also means funds remain in the employer’s account longer.
No Bank Account Required: Unlike direct deposit, employees do not need a bank account to receive a physical check. They can cash it at their bank, a check-cashing service, or endorsed to another party.

Disadvantages of Workful Pay by Check

Time-Consuming: Printing, signing, and distributing physical checks is inherently more time-consuming than processing direct deposits. This overhead increases significantly with a larger workforce. A study by the American Payroll Association indicated that manual check processing can take up to 10 times longer than automated direct deposit.
Costly: Beyond the labor involved, there are direct costs associated with check payments. This includes the cost of specialized check stock, printer ink, and potentially postage if checks are mailed. A typical business check costs between $0.20 to $0.50 per check, not including printing and distribution labor.
Security Risks: Physical checks are susceptible to fraud e.g., forgery, alteration and theft. If a check is lost or stolen, it can lead to complications and potential financial loss until a stop payment is issued and a new check is cut.
Logistical Challenges: Distributing checks can be a logistical headache, especially for remote employees or those on different work schedules. Mailing checks adds time and cost and introduces the risk of postal delays.
Lack of Immediacy: While checks can be cashed quickly, they are not as immediate as direct deposit, which often makes funds available on payday itself. Employees relying on immediate access to funds might find checks less convenient.
Environmental Impact: Printing checks contributes to paper waste and energy consumption, which might be a concern for environmentally conscious businesses. A move towards paperless payroll can significantly reduce a company’s carbon footprint.

Integrating Check Payments with Other Workful Features

Workful’s strength lies in its comprehensive approach to payroll and HR.

The check payment feature doesn’t operate in a silo.

It integrates seamlessly with other functionalities to provide a holistic solution.

Time Tracking Integration

Workful offers robust time-tracking capabilities, whether through clock-in/out features, timesheets, or mobile apps. Workful employer login

Accurate Hours: Employee hours tracked through Workful directly feed into the payroll calculations. This eliminates manual data entry errors and ensures that the hours paid on checks are precise.
Overtime and Breaks: The system automatically calculates overtime based on configured rules and tracks breaks, ensuring compliance with labor laws, which is then reflected in the gross pay on the check. For example, federal law requires overtime pay of at least 1.5 times the regular rate for hours worked over 40 in a workweek. Workful automates this.
Simplified Reporting: Integrated time tracking means you can generate reports on employee hours and attendance directly from Workful, making it easier to verify payroll data that goes onto the checks. This can save dozens of hours monthly for businesses with more than 20 employees.

Tax Compliance and Reporting

One of the most valuable aspects of using a payroll service like Workful is its handling of tax compliance, even when paying by check.

Automatic Tax Calculations: Workful automatically calculates federal, state, and local payroll taxes Social Security, Medicare, federal income tax withholding, state income tax, unemployment taxes, etc. based on the latest tax laws and employee W-4 forms. These deductions are clearly itemized on the check stub.
Form Generation: At year-end, Workful generates necessary tax forms like W-2s for employees and 940/941 forms for the IRS, incorporating all payroll data, including wages paid via check. This automation is critical. errors in W-2s can lead to fines of $50 to $570 per form for incorrect or late filings.
Compliance Updates: Workful stays updated on changing tax regulations, ensuring your payroll remains compliant without you having to constantly monitor legislative changes. This proactive approach significantly reduces the risk of penalties.
Tax Filing Services: While you’re printing checks, Workful can also handle the actual filing of your payroll taxes with the relevant authorities, often electronically, further simplifying your tax obligations.

Employee Self-Service Portal

Workful typically includes an employee self-service portal, which enhances the check payment experience for both employees and employers.

Access to Pay Stubs: Even if an employee receives a physical check, they can access their digital pay stubs through the portal. This provides a convenient way for them to review their earnings, deductions, and year-to-date totals at any time, reducing inquiries to HR.
Personal Information Updates: Employees can update their personal information e.g., address, contact details directly in the portal. This ensures that the information printed on checks and tax forms is always current. Incorrect addresses on W-2s alone cause millions of delays for employees annually.
Tax Form Access: Employees can access and print their W-2s and other tax forms directly from the portal, reducing the administrative burden on the employer during tax season.
Direct Deposit Enrollment: While this article focuses on checks, the portal also allows employees to easily enroll in direct deposit if they decide to switch from paper checks in the future, providing a seamless transition.

Enhancing Efficiency: Tips for Workful Check Payroll

Even with a robust system like Workful, there are strategies to maximize efficiency and minimize potential pitfalls when paying by check.

Think of these as productivity hacks for your payroll operations.

Streamlining Check Distribution

The act of printing a check is just one part. getting it into the employee’s hands is the other. Workful investors

Designated Pickup Times: For in-office employees, establish clear and consistent check pickup times. This reduces interruptions throughout the day and ensures everyone knows when to expect their pay.
Secure Mail Practices: If mailing checks, ensure addresses are verified and use secure mailing practices. Consider tracking or certified mail for particularly sensitive situations or high-value checks. Always mail in discreet envelopes to avoid signaling their contents.
Clear Communication: Inform employees about the payroll schedule and when they can expect their checks, whether by pickup or mail. Proactive communication reduces “where’s my check?” inquiries.
Leverage Digital Signatures If Applicable: If your jurisdiction and bank allow, consider digital signatures for checks to save time on manual signing, especially for high-volume payrolls. This requires careful security protocols.

Managing Check Stock and Printer Maintenance

Treat your payroll check process like a mini-production line.

Inventory Management: Maintain a sufficient supply of specialized check stock. Running out on payday is a significant disruption. Keep track of serial numbers for security.
Printer Calibration: Regularly calibrate your printer to ensure checks print correctly and align with the pre-printed fields on the check stock. Test prints are invaluable before a full payroll run.
Maintenance Schedule: Perform routine printer maintenance to prevent jams, misprints, and other issues that can delay payroll. A well-maintained printer is a reliable one.
Backup Printer Plan: Have a backup plan in case your primary payroll printer fails. This could be another office printer or an agreement with a local print shop for emergencies.

Proactive Employee Management and Communication

A smooth payroll process often hinges on good employee data and communication.

Regular Address Verification: Periodically ask employees to confirm their mailing addresses, especially if they move. This prevents checks from being sent to old addresses. A simple annual or bi-annual audit can save significant headaches.
Education on Pay Stubs: Educate employees on how to read their pay stubs and where to find key information e.g., deductions, year-to-date totals. This empowers them to understand their pay and reduces basic questions for HR.
Direct Deposit Promotion: While offering checks, consistently promote the benefits of direct deposit e.g., immediacy, security, convenience. Many employees will eventually transition, reducing your check printing workload. For example, a campaign offering a small incentive for direct deposit enrollment might encourage a significant shift, as seen in companies that have reduced check usage by over 30% through such initiatives.
Designated Payroll Contact: Assign a specific person or department to handle payroll inquiries. This centralizes questions and ensures consistent, accurate answers.

Workful’s Approach to Payroll Flexibility and Modern Payroll Trends

Workful, like many leading payroll providers, aims to balance traditional payment methods with modern efficiency.

While facilitating check payments, they also nudge businesses towards more automated, secure, and environmentally friendly options.

Adapting to a Hybrid Workforce

The rise of remote and hybrid work models has profoundly impacted payroll distribution. Workful customer service code

Challenges with Physical Checks: For a distributed workforce, mailing checks becomes the primary option, introducing delays and risks associated with postal services. Employers often face challenges verifying delivery.
Push Towards Digital: Workful’s platform is designed to support a shift towards digital payment methods direct deposit, pay cards which are inherently more suitable for remote teams, ensuring employees receive funds promptly regardless of location.

The Evolution of Payroll Beyond Checks

The trend is clear: paper checks are gradually declining in favor of digital alternatives.

Direct Deposit Dominance: Direct deposit is now the most common method of wage payment, with over 93% of U.S. workers receiving their pay via direct deposit in 2023, according to NACHA National Automated Clearing House Association. Workful’s platform primarily optimizes for this, making check printing an important but often secondary option.
Pay Cards: For unbanked employees, pay cards prepaid debit cards loaded with wages offer a secure and convenient alternative to checks, bridging the gap between paper and full direct deposit. Workful may offer integrations or partnerships for pay card solutions.
On-Demand Pay: An emerging trend, on-demand pay or earned wage access, allows employees to access a portion of their earned wages before payday. While Workful itself might not offer this directly, its detailed payroll tracking lays the groundwork for such integrations. This trend is gaining traction, with 20% of employees expressing interest in daily pay options.
Paperless Initiatives: Businesses are increasingly adopting paperless payroll for environmental and efficiency reasons. Workful’s digital pay stubs, accessible through the employee portal, are a significant step in this direction, reducing the need for paper copies even when physical checks are issued.

Ensuring Compliance and Mitigating Risks with Workful Pay by Check

Compliance is paramount in payroll.

Workful takes on much of this burden, but as an employer utilizing checks, you still have responsibilities to ensure legal adherence and risk mitigation.

Federal and State Wage and Hour Laws

Paying by check still requires strict adherence to all applicable labor laws.

Minimum Wage and Overtime: Your Workful calculations will factor in minimum wage and overtime rules, but you must ensure your timekeeping practices which feed into Workful are accurate and compliant with federal Fair Labor Standards Act FLSA and state-specific regulations. Many states have stricter overtime rules or daily overtime requirements.
Pay Period Regularity: Wages must be paid regularly according to established pay periods e.g., weekly, bi-weekly, semi-monthly, monthly. Workful helps enforce this by scheduling payroll runs.
Final Paycheck Laws: Many states have specific laws regarding when a final paycheck must be issued to a terminated employee. This can be immediately or within a few days. If paying by check, ensure you can meet these tight deadlines, which may require manual check preparation outside of a regular Workful run if an employee is terminated between cycles. For example, California requires immediate payment of final wages upon termination.
Deduction Legality: All deductions from an employee’s pay must be legally permissible and, in many cases, authorized in writing by the employee. Workful accurately applies authorized deductions to the check.

Escheatment Laws for Unclaimed Wages

Uncashed checks can lead to complications related to escheatment laws. Employee fte

Definition: Escheatment refers to the process by which unclaimed property including uncashed payroll checks is turned over to the state after a dormancy period. This period varies by state, typically 1-5 years.
Employer Responsibility: As the employer, you have a legal obligation to attempt to reconnect with the employee to pay the uncashed wages before the escheatment deadline. This usually involves sending certified letters.
Reporting and Remittance: If the wages remain unclaimed, you must report them to the relevant state’s unclaimed property division and remit the funds. Failure to do so can result in significant penalties. Workful’s detailed payroll records are crucial here for tracking outstanding checks.
Proactive Measures: Encourage direct deposit to minimize uncashed checks. For those who receive checks, remind them to cash their checks promptly. Regularly review outstanding checks within Workful’s reporting features.

Mitigating Check Fraud and Internal Controls

Beyond the security features of check stock, internal processes are key to preventing fraud.

Regular Audits: Conduct periodic internal audits of your payroll process, including a review of check reconciliations and payee verification.
Limited Access: Restrict access to Workful’s payroll functions and blank check stock to only authorized personnel. Implement strong passwords and multi-factor authentication for Workful accounts.
Review Vendor Payments: While focusing on payroll, ensure that any checks issued for vendor payments also follow strict internal controls, as check fraud isn’t limited to payroll. Businesses lose billions annually to various forms of check fraud.
Employee Background Checks: For individuals involved in handling payroll or financial transactions, conduct thorough background checks to reduce the risk of internal theft or fraud. Data from the Association of Certified Fraud Examiners indicates that businesses without strong internal controls are twice as likely to be victimized by occupational fraud.

Alternatives to Workful Pay by Check: Exploring Halal Financial Solutions

While Workful efficiently manages check payments, it’s crucial for businesses committed to Islamic principles to explore payment methods that align with Sharia compliance, particularly concerning financial transactions.

Traditional check payments, while a practical tool, exist within a broader financial system that often involves interest riba at various touchpoints, even if indirectly.

The goal is to minimize exposure to impermissible elements wherever possible and promote ethical alternatives.

Understanding the Islamic Stance on Conventional Financial Systems

Islam strictly prohibits riba interest, which is seen as exploitative and unjust. This prohibition extends to financial dealings where interest is charged or received, directly or indirectly. While paying an employee via check itself isn’t riba, the underlying banking system often operates on interest-based lending and investments. Freshbooks payroll add on

Key Issues to Consider:

Conventional Banking: Most conventional banks operate on interest-based models, even their current accounts or checking accounts might be involved in interest-bearing activities.
Credit Cards: Utilizing credit cards for business expenses if those systems are linked to the payroll process or accounting is generally impermissible due to interest charges.
Loans and Overdrafts: Any business loans or overdraft facilities tied to conventional banks that might affect cash flow for payroll can involve riba.

Why This Matters: As a Muslim business, the aim is to purify one’s earnings and transactions. While eliminating all exposure to riba in a globalized economy is challenging, one must strive to opt for the most permissible alternatives.

Better Alternatives for Payroll and Business Finance Sharia-Compliant

Instead of relying solely on systems that might entangle your business with riba, consider these ethical and Sharia-compliant alternatives:

1. Direct Deposit to Halal Banks or Islamic Financial Institutions

How it works: Instead of printing checks from a conventional bank account, you would use Workful’s direct deposit feature to transfer wages directly to employee accounts held at Islamic banks or financial institutions that operate strictly on Sharia-compliant principles.
Benefits: This is the most direct way to ensure your payroll funds are managed within an ethical framework. Islamic banks offer non-interest-based current accounts, investment accounts, and financing solutions.
Actionable Steps:
- Research and establish a business bank account with a reputable Islamic bank.
- Encourage employees to open accounts with Islamic financial institutions for their direct deposit.
- Utilize Workful’s direct deposit functionality, ensuring the funds originate from your Sharia-compliant business account.

2. Pay Cards with Islamic Finance Partnerships

How it works: For unbanked employees, or those preferring a card, explore prepaid debit cards issued by financial technology companies that partner with Islamic banks or ensure their underlying financial activities are interest-free.
Benefits: Provides convenience similar to a debit card without requiring a traditional bank account, while adhering to ethical financial principles.
Actionable Steps: Inquire with Workful or other payroll providers if they have integrations or recommendations for Sharia-compliant pay card providers. Some fintech companies are emerging to fill this niche.

3. Cash Payments with Strict Controls

How it works: While less common for modern businesses due to logistics and security, direct cash payments for wages are inherently riba-free.
Benefits: Absolutely no involvement with conventional banking systems for the wage transfer itself.
Considerations: This method is highly impractical for larger businesses and poses significant security risks. It requires meticulous record-keeping for tax and audit purposes.
Actionable Steps: Only consider this for very small teams or specific situations where no other Sharia-compliant electronic option is feasible, and ensure robust internal controls for safety and accountability.

4. Halal Business Financing and Operating Accounts

How it works: Ensure your business operates using Sharia-compliant financing models e.g., Murabaha, Mudarabah, Musharakah, Ijarah instead of interest-based loans. Your business operating account should also be with an Islamic bank.
Benefits: This ensures that the overall financial health of your business, from which payroll funds are drawn, is free from riba.
Actionable Steps: Consult with Islamic finance experts to transition your business finances to Sharia-compliant structures. This holistic approach provides peace of mind.

By prioritizing these Sharia-compliant alternatives, a Muslim business can better align its payroll practices with its core values, ensuring that wealth is generated and distributed in an ethical and permissible manner. This goes beyond mere transactional compliance.

It embodies a holistic commitment to Islamic principles in business operations. Arrears in payroll

Frequently Asked Questions

Workful Pay by Check: General & Setup

Does Workful support paying employees with paper checks?

Yes, Workful supports paying employees with paper checks.

You can generate and print physical checks directly from the Workful platform after processing payroll.

How do I set up check printing in Workful?

To set up check printing, ensure your company and employee information is complete, link your business bank account, and confirm check payment is enabled in your payroll settings within Workful.

Can Workful print checks directly from my office printer?

Yes, Workful is designed to allow you to print checks directly from your office printer using compatible check stock.

What kind of check stock do I need for Workful?

You’ll need specialized, pre-printed check stock designed for payroll systems. Getting paid in arrears

Workful typically provides guidance or specifications for the correct check stock to ensure proper alignment and security features.

Does Workful provide check stubs with the printed checks?

Yes, Workful generates detailed check stubs that are printed along with the checks.

These stubs include a breakdown of gross pay, deductions, and net pay for the employee.

Security and Compliance

Is paying by check with Workful secure?

While Workful provides the tools, the security of check payments largely depends on your practices.

Using high-security check stock, secure storage, and strong internal controls like positive pay services is crucial to mitigate fraud risks. Workful customer support number

How does Workful handle payroll taxes for check payments?

Workful automatically calculates all federal, state, and local payroll taxes for check payments, deducts them from the employee’s pay, and accounts for them in your overall payroll tax obligations.

Does Workful help with W-2s for employees paid by check?

Yes, Workful consolidates all wage data, including those paid by check, to generate accurate W-2 forms for your employees at the end of the year.

What happens if a check gets lost or stolen after I print it from Workful?

If a check is lost or stolen, you would typically issue a stop payment order with your bank through your Workful account or directly with your bank, and then issue a new check to the employee. Workful keeps records to facilitate this.

Does Workful comply with state laws regarding final paychecks?

Workful helps calculate final pay, but it’s your responsibility to ensure you meet state-specific deadlines for issuing final paychecks, especially if the employee is terminated between regular payroll runs.

Advantages and Disadvantages

What are the main benefits of using Workful for check payments?

Benefits include catering to employees who prefer paper checks, providing a tangible pay record, and integrated tax calculations and record-keeping through Workful’s platform. Calculate fte

What are the downsides of paying by check through Workful?

Disadvantages include increased time and cost check stock, ink, labor, security risks fraud, theft, and logistical challenges for distribution, especially for remote employees.

Can I offer both direct deposit and check payments with Workful?

Yes, Workful allows businesses to offer both direct deposit and paper checks as payment options, giving employees flexibility in how they receive their wages.

Is paying by check environmentally friendly?

No, paying by paper check is generally less environmentally friendly than direct deposit due to the paper consumption, ink usage, and energy required for printing and transportation.

Why might an employee prefer a paper check over direct deposit?

Reasons might include not having a bank account, distrust of electronic banking, or a preference for a tangible record of their earnings.

Alternatives and Best Practices

Does Workful offer direct deposit as an alternative to checks?

Yes, Workful’s primary and most encouraged payment method is direct deposit, which is more efficient and secure for most employees. Online payroll australia

Are there any Sharia-compliant alternatives to conventional check payments?

Yes, Sharia-compliant alternatives include direct deposit to Islamic banks, pay cards issued by ethically aligned fintechs, or, for very small teams, direct cash payments with strict controls.

How can I encourage employees to switch from checks to direct deposit using Workful?

You can communicate the benefits of direct deposit speed, security, convenience, offer assistance with setting it up through the Workful employee portal, or even provide small incentives.

Can Workful help me track uncashed checks for escheatment purposes?

Workful’s reporting features can help you track outstanding checks, which is crucial for complying with state escheatment laws regarding unclaimed wages.

What if I have a very small business and want to pay by check through Workful?

Workful is suitable for small businesses.

For check payments, ensure you have a reliable printer, secure check stock, and clear distribution methods, even for a small team. Automated payroll service

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