Getting paid salary by cheque

ldy4mxonucwsq6

seamus wrote: »

basically it comes down to inertia. Whoever is paying the money is either unaware that a better system exists, or is too stubborn to go to the effort of changing.

That should be a warning flag to any new employee that they may find the company very resistant to change and modernisation, no matter how much it may improve the business.

Either that or the owner is a bit of a skinflint who likes having the cash for a few extra days or refuses to spend a penny on improvements that aren't absolutely critical.

I think you hit the nail on the head and this is my concern.

I like efficiency and progression, not an attiude of we've always done it this way so that's why we do it this way.

ldy4mxonucwsq6

OMM 0000 wrote: »

No, the money is available the following day.

Are cheques in Ireland still taking 5 days?

Yes, plus there's the issue of interest accruing if something pays out and your cheque hasn't cleared yet. Minimal interest charges but not necessary when there are better ways to do things.

pinkypinky

Will you be in a position to offer modernisation advice? Fresh eyes on a situation often brings benefits.
The small company I worked for were happy to take on cost-saving suggestions and embraced internet banking after a couple of years.

ldy4mxonucwsq6

pinkypinky wrote: »

Will you be in a position to offer modernisation advice? Fresh eyes on a situation often brings benefits.
The small company I worked for were happy to take on cost-saving suggestions and embraced internet banking after a couple of years.

I have to say, I have raised eyebrows at a few things already and been told that's the way the boss likes it and they aren't for turning.

But I would absolutely offer ideas on better, efficient, more cost effective methods if I saw a solution (regarding anything). Might need to just bide my time until my opinion is trustworthy.

Seve OB

seamus wrote: »

In Ireland it's more than unusual. Cheques cost money. Every cheque issued costs money. Every year it gets more and more difficult to issue and lodge cheques. In accounting terms issuing cheques is a nightmare as every cheque is a liability on your current account that has to be reconciled every month to make sure it doesn't get out of hand. If a company has thousands of euro in outstanding cheques, then securing business credit will be troublesome.

There are banking rules in the eurozone which make electronic transfers not only considerably easier than cheques, but safer and more predictable.

I've given several explanations above as to why a small business wouldn't use EFT, but basically it comes down to inertia. Whoever is paying the money is either unaware that a better system exists, or is too stubborn to go to the effort of changing.

That should be a warning flag to any new employee that they may find the company very resistant to change and modernisation, no matter how much it may improve the business.

Either that or the owner is a bit of a skinflint who likes having the cash for a few extra days or refuses to spend a penny on improvements that aren't absolutely critical.

actually you should have a read of a few of my rants to BOI on their page here. paying by sepa is a pain in the arse. it is much easier to pay by cheque.

we used to issue about 200+ cheques a week many years ago. it saved us a fortune with the amount of them which were never cashed, i'm talking thousands every year, it cost us lots when we went to eft payments as everyone got all their money all the time.


with regards to a €20 charge per payment, we recently had a new staff member wanted to be paid to his revolt account (because he didn't have an irish bank account) this would not go through on our payroll file, so we were given 3 options by the bank. change the way we do things altogether and put a different facility in place ehhhhh no!, make a seperate sepa payment to the one individual which could incur a charge of €12.50 or €17.50.... pita to do and f that for a charge.... or lastly, tell the lad to get an irish account. we told him to get an irish account

Strumms

The average time for a cheque to clear is four to five days, so one working week about..slightly faster if the bank of the recipient is the same as the bank issuing it.

Not good enough, if you hand me a cheque next Friday, supposedly payday, you haven’t paid me, you have paid me when I have the money... also I wouldn’t think much about having to spend time every week, making my way to the bank, Qing up etc....

Payment in 2020 should be electronic. If a cost is incurred, so be it, it’s just a cost of doing business, like hiring a cleaning company, like paying insurance. You need to organize for your staff to be paid in an efficient and timely manner (bank transfer). Talk about them heading down to AIB with a cheque and awaiting clearance is not realistic.

Sleeper12

DesperateDan wrote:

I thought there was like a €5 charge now for the banks to even catch the smell a cheque?

Bank charges whoever issues the cheque. close to 1 euro

DesperateDan wrote:

Seems totally ridiculous, we live an age where there are literally hundreds of alternatives that would be cheaper and almost instant. Are they paying some old one to do these who's been with the company since day 1 or something?!

I can go to a bank of ireland pass machine and lodge cheques into my current account. Its like lodging cash. Its credited to my account that day and I can draw down on it immediately. I wouldn't see getting paid by cheque a major inconvenience nor would I need time off work to cash the cheque.

L1011

Sleeper12 wrote: »

I can go to a bank of ireland pass machine and lodge cheques into my current account. Its like lodging cash. Its credited to my account that day and I can draw down on it immediately. I wouldn't see getting paid by cheque a major inconvenience nor would I need time off work to cash the cheque.

Consumer BOI accounts do not allow you to draw down immediately against lodged cheques. 3-5 days, or more if its a weird source like the Citibank cheque Ryanair sent me.

Also, they charge for cheque lodgement even at a LATM for consumer accounts. They also charge for EFT lodgements; but less.

Guy:Incognito

NSAman wrote: »

Cheque/Check its all money.

...

Checking the contents of a box is not money. Now, if there happens to be a cheque in that box when you check, then you have yourself some money.

Sleeper12

bmc58 wrote:

A cheque takes five days to clear also.Have you thought of this?

You need to change banks. My bank credits cheques instantly in my account. They can be lodged in the cash machine & once lodged before 3:30pm it can be drawn down that day. I haven't had to wait for a cheque to clear in over 25 years.

SEPT 23 1989

Sleeper12 wrote: »

Bank charges whoever issues the cheque. close to 1 euro



I can go to a bank of ireland pass machine and lodge cheques into my current account. Its like lodging cash. Its credited to my account that day and I can draw down on it immediately. I wouldn't see getting paid by cheque a major inconvenience nor would I need time off work to cash the cheque.

Same here but a business account

Straight into the account no five day wait

Banks will do this if you request it

Sleeper12

OMM 0000 wrote:

Are cheques in Ireland still taking 5 days?

Not in my bank. Some people need to shop around

Sleeper12

L1011 wrote:

Consumer BOI accounts do not allow you to draw down immediately against lodged cheques. 3-5 days, or more if its a weird source like the Citibank cheque Ryanair sent me.

Maybe you don't have the credit rating I have. My cheques can be drawn down as soon as they hit my BOI account.

Again I suggest people should shop around. Banks offer different services and interest rates to different customers.

Guy:Incognito

pinkypinky wrote: »

Yes.

Depends on your bank I suppose. I get expenses paid by cheque. I'm with ulster bank and the cheques are aib. Normally is in the account same day.

Used to get paid by cheque the odd time in my last job, he used ulster bank too and it was there straight away.

Strumms

Sleeper12 wrote: »

Not in my bank. Some people need to shop around

Some people just need to find an employer who pays them direct and accessible money, immediately on payday... without needing to put in more legwork and effort to access it, trips to the bank, time waiting etc...

Most companies who pay electronically are that efficient that at 00,01 on the day payment is due its available, in their bank. How it should be.

dotsman

Deleted User wrote: »

If you have a business bank account, changing banks could well bankrupt you. Gives customers the excuse of not being able to pay because they "still have the old details" even though you gave them the new ones 100 times.

If your business could be bankrupt by changing banks, then your business is bankrupt anyway!

There's nothing to stop you keeping the old account open during the transition period (until you can see that all debtors are using the new account).

ldy4mxonucwsq6

Sleeper12 wrote: »

Not in my bank. Some people need to shop around

No bank does this, all cheques have to go through clearing regardless.

Your bank might let you spend it before it's cleared but it's technically not your money until cleared.

Depending on where the cheque has come from and where your account is this takes between 3-5 working days to clear.

When you spend 'uncleared' money you end up paying interest, even though you think the money is there its not really there until its gone through the full clearing process.

If the cheque bounces then you are the one down that amount along with a hefty fee in some cases.

mrmorgan

am i mad in thinking that Cheques won't be legal tender for too long more??

ldy4mxonucwsq6

mrmorgan wrote: »

am i mad in thinking that Cheques won't be legal tender for too long more??

Part of the reason why they are so awkward and expensive to use between government duty, bank fees etc. It's a disincentive to use them and they will be phased out eventually.

I haven't written a cheque or set foot in a bank for years, been banking online for 20 years now and that does most of my day to day stuff.

meeeeh

Where I come from personal cheques are not legal for about 25 years. I never worked with business cheques until I moved to Ireland.

As an employer and person processing wages and other payments I don't like to deal with cheques at all. We only use them for donations and an odd time when chq is more convenient than transfer. A lot of smaller businesse like garages don't accept them already because they are riskier and you have no comeback. (In practice) I think they will be gone eventually and it's about time. That being said I might need to pay by cheque this week if aib don't pull their finger out and send me new digipass.

seamus

meeeeh wrote: »

Where I come from personal cheques are not legal for about 25 years. I never worked with business cheques until I moved to Ireland.

There used to be a guarantee system in Ireland for cheques. If you presented the cheque and a guarantee card, the retailer knew that any cheque up to €200 would be honoured by the bank regardless of how much the person had in their account.

Debit cards also weren't really a thing. There was a system called "Laser" that was a debit card, but not every retailer and not every bank participated. And people weren't big on credit cards. So the cheque was very popular for a long time.

About a decade ago, the cheque guarantee scheme was abolished, and with it the vast majority of retailers stopped accepting cheques at all. Small businesses with a personal relationship with the customer will accept cheques, but shops in particular won't accept cheques anymore.

My wife runs a small business and some people still pay with cheques, and it seems crazy to me. Why would you have cheques if virtually nowhere takes them?

Seve OB

Just to add that I'm with AIB personal account (used to be a cashsave account till they got rid of them and made it a current account) and for as long as I can remember whenever I lodged a cheque it was always credited and available immediately to drawdown.

Mrs OBumble

mrmorgan wrote: »

am i mad in thinking that Cheques won't be legal tender for too long more??

Yes. There are still a few cases where they're just safer and better.

I belong to a choir. Once a year, I need to pay membership fees - and everyone else does on more or less the same day too.

Either our treasurer gives out the bank account number and spends hours chasing to see who has paid and reconciling deposits with alleged membership lists (it's a nightmare with a bunch of lovely people who don't really understand reference numbers) ... or he carries 4k in cash home that night, or many of us write cheques. Cheques win.

runawaybishop

Social protection still issue cheques, lots of them.

dennyk

dotsman wrote: »

Windows!

AltGr + 4 = €

Windows with a US keyboard...it's Alt + 0128 on the numpad for me!

ldy4mxonucwsq6

Seve OB wrote: »

Just to add that I'm with AIB personal account (used to be a cashsave account till they got rid of them and made it a current account) and for as long as I can remember whenever I lodged a cheque it was always credited and available immediately to drawdown.

Check with your bank if you would pay interest on this arrangement should you go into deficit while cheque is clearing.

Also if cheque bounces in the days after your lodgement, that full amount will come right back out of your account within a few days, even if you've already spent it.

Khreesat

OMM 0000 wrote: »

I pay my staff by cheque.

Our company's online banking is crap, and they charge EUR 20 for each transaction.

So cheque it is...

We're a software company.

My sympathies to irish online banking skills. In country I come from, online banking is superior to irish, it you asked them about cheques they would laugh at you and said "We are not in 90s anymore !" I don't know any of the bank in Poland to accept cheques.
20 EUR for transaction? Change a bank man. I still have polish bank account here and it costs me nothing, plus I have 365/24 customer service online chat/phone , not this joke 9 to 5 irish helpline. they make millions of euro out of you from interest rates by handling people money and they still ask you to pay 20 euro for transaction? ROTFL>

dennyk

Seve OB wrote: »

we used to issue about 200+ cheques a week many years ago. it saved us a fortune with the amount of them which were never cashed, i'm talking thousands every year, it cost us lots when we went to eft payments as everyone got all their money all the time.

Sure, but we're talking employee pay here, not whatever little rebate cheques or whatnot that your company was sending to random people. If employees' paycheques aren't being cashed and you're considering that money in your company's pocket, that's likely to cause some serious issues for you in short order.

Seve OB wrote: »

with regards to a €20 charge per payment, we recently had a new staff member wanted to be paid to his revolt account (because he didn't have an irish bank account) this would not go through on our payroll file, so we were given 3 options by the bank. change the way we do things altogether and put a different facility in place ehhhhh no!, make a seperate sepa payment to the one individual which could incur a charge of €12.50 or €17.50.... pita to do and f that for a charge.... or lastly, tell the lad to get an irish account. we told him to get an irish account

Congrats, your company is in violation of SEPA regulations, specifically Article 9.1 of EU Regulation 260/2012:

1. A payer making a credit transfer to a payee holding a payment account located within the Union shall not specify the Member State in which that payment account is to be located, provided that the payment account is reachable in accordance with Article 3.

Khreesat

Seve OB wrote: »

with regards to a €20 charge per payment, we recently had a new staff member wanted to be paid to his revolt account (because he didn't have an irish bank account) this would not go through on our payroll file, so we were given 3 options by the bank. change the way we do things altogether and put a different facility in place ehhhhh no!, make a seperate sepa payment to the one individual which could incur a charge of €12.50 or €17.50.... pita to do and f that for a charge.... or lastly, tell the lad to get an irish account. we told him to get an irish account

You not only violate EU law you are member of, but that person whom you told to get irish account is entitled to get huge compensation from the company if he sues it with legal action on the ground of discrimination (I hope he does). Payroll issues are your problem not the payee, get it upgraded by your IT provider or you will be sued.

L1011

Sleeper12 wrote: »

Maybe you don't have the credit rating I have. My cheques can be drawn down as soon as they hit my BOI account.

Again I suggest people should shop around. Banks offer different services and interest rates to different customers.

Its the credit rating of the cheque writer thats of concern.

BOI have bog standard consumer account terms, all public and all the same when it comes to cheques.

Are you not using a business account as you're self employed.