What is a prenote?

This is where prenotes are utilized as a preventive measure to avoid that mistake.

Prenotes also have the advantage of assisting with record keeping for employers. Prenotes and direct deposit options make a lot of paperwork unnecessary because they use electronic record-keeping methods. Job candidates often view this as a required portion of their employee benefits packages.

Here are the advantages of using direct deposit and prenotes as an employer:

• They are convenient

  Many employees who have open bank accounts prefer to receive their compensation via direct deposit. Issuing paper checks for payroll is a more tedious and oftentimes far more expensive payment option. Prenotes make your payments to employees accurately, and on time with them receiving the money on payday, and won't have to wait for a check to clear.

• Stress relief

  Using prenotes and direct deposit relieves a lot of payroll stresses. They represent a far more secure way to deliver payment to your employees than through a traditional paper payroll check. Paper checks can be inaccurate, stolen, or lost. They can also take more time to clear at the employee's bank and this can be frustrating if your employee needs the money soon.

• Big reduction in paperwork

  When employers use direct deposit and prenotes they are saving their companies in terms of time and money. Since direct deposits keep financial transactions and other records digitally stored, an employer doesn't need to amass a lot of files and documents concerning their employees' payroll and transactions. Prenotes and direct deposit make for a seamless option.

• They are cost-effective

  Printing paper payroll checks can add a significant expense to an employer's business. In addition, if an employer mails their checks, they also have to pay for postage. This adds up over time, and depending on the size of a company's staff, it can result in considerable costs to the business. Direct deposit with the use of prenotes is a far cheaper option.