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Category: Accounting & Payroll

How to Choose a Payroll Schedule – Infographic

payroll schedule infographicMost companies have several choices as to which payroll schedule to use. There are four that are allowed in the US. They are: weekly, bi-weekly, monthly, and bi-monthly. The four choices all have their own pros and cons. This graphic should help a business owner get a handle on the right choice for their company.

Not all of these schedules, however, are available to use in all states. Be sure to check this list for payday frequency requirements by state. The options vary by state and even by occupation in some instances.

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What Is a Workweek Anyway?

168 hours in a weekA workweek has different meanings depending on who you talk to so it’s no surprise that business owners can get a little lost on the topic.

The common definition differs from the payroll definition, which makes it particularly difficult to sort out. But sort out you must, because when it comes to business the payroll definition is the one that counts since that’s the one used in wage and hour disputes.

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Why is Your Payroll Bigger Than Expected?

Checking over budget and payrollHave you ever run payroll and found that your cost is much higher than expected? In some industries, like dental offices, for example, payroll costs should be pretty constant. Your same five employees come to work every day and work their set shift. They take off when they’re sick or on vacation and your time-off policy compensates them for it. They don’t need to stay late or come in early most of the time – the office is open on a pretty set schedule.

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Top 6 Payroll Mistakes

Making mistakes with payrollIf you think about the role of a business owner, you’ll realize that payroll takes sort of a second seat. While it’s incredibly important, business owners are experts at running their business. They’re not trained in payroll and they haven’t poured over all of the federal and state laws. This leaves room for quite a bit of error in what is the largest business expense. I’d like to quickly bring some of the common errors to the attention of these busy people so they don’t wind up in trouble for it later.

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Estimating the Last Few Days of the Pay Period Isn’t a Good Idea

Co-authored with Danielle Feiger

You’d almost be surprised that an employer would recognize the value in tracking accurate time (it saves a lot of money on payroll costs) and then, at the end of every pay period, estimate the hours for the last few days.

But it’s actually a fairly common practice, though not a very good one.

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Closing Payroll Early to Cover Holidays

Cash in a suitcase

Did you know that businesses are supposed to follow regular payroll schedules? Businesses who don’t can get into big trouble so listen up if you’re new to this.

Employers can’t just pay their employees whenever they get paid from their clients and they can’t postpone payroll because they ran into a big expense. Nope. Employees must be paid in a timely manner, all the time. This means that a business should have some reserve for payroll because when the unexpected happens, employees still need to be paid.

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The Last Paycheck – When Terminated Employees Need to Be Paid

The exact date at which employees need to receive their final paycheck upon termination is a mystery to many small business owners. The fact that there are laws surrounding the issue at all vexes many who are responsible for paying employees. And it’s not surprising. State laws are complicated and the Fed has no laws about it at all.
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