Employee payroll needs to adhere to a regular payroll schedule. 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. However, while you do have to stick to a schedule, you can announce your plans to close payroll early so that employees get a check in time for the holidays.
Tag: pay period
Most companies can choose which payroll schedule they want to use, depending on the state in which they operate (check here for more info: payday frequency requirements by state). Four options are allowed in the US, including: weekly, bi-weekly, monthly, and bi-monthly. Each option has specific benefits. This payroll schedule infographic should help business owners get a handle on the right choice for their company.
A 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.
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.
One of the many choices a company must make when starting out is how often to run payroll. Which pay schedule a company chooses depends on a few factors like which state they live in, whether employees earn overtime, and who does their payroll and what it costs. With that in mind, there are four most commonly used payroll schedules in the U.S to choose from.
You’ll be doing your end of year payroll reporting soon and we know this can sometimes be confusing, so we’d like to offer a tip on how to make it more accurate.