Owning a small business means constantly pushing yourself to perfect your product, attract new customers, or implement new growth plans. Those that are successful will often need to hire new employees and find other ways for increasing efficiency. One method of doing so is hiring a third party for payroll services. But while a CPA can handle all the logistics once employees are onboarded, you will have to decide what pay schedule your company should follow.

A Guide to the Different Payroll Schedules 

Weekly 

If you opt for weekly payments, payroll will need to be completed 52 times a year—which entails a large time commitment and can result in more processing fees than with other schedules. Employees, on the other hand, appreciate weekly schedules the most because they ensure money in their account every seven days; hourly workers with inconsistent schedules may find this especially convenient.

Bi-Weekly

A bi-weekly payroll schedule means distributing paychecks every two weeks, which works out to 26 pay periods a year. This frequency is a great compromise for both employers and employees. Employers get to process payroll half as often as they would on a weekly schedule, while employees still get paid relatively often.

Semi-Monthly 

Employees who get paid semi-monthly will receive 24 paychecks a year. These paychecks are usually distributed on the same two days of every month, like the 15^th and the 30^th. Each pay period will include about 87 hours for full-time employees.

Monthly 

Businesses that operate on a monthly schedule distribute paychecks 12 times a year, and it’s usually on the same day every month. Payroll service providers generally advise against using this schedule because it can make budgeting hard for employees. Additionally, new hires may have to go without a paycheck for more than a month, depending on the duration of the onboarding process. 

When you’re ready to arrange for payroll services, turn to Young Hoy & Burnett, CPA. Based in Texarkana, TX, this full-service firm has been working with individuals and businesses across the Four States area for more than 40 years. To learn more about their payroll services in particular, visit their website. To discuss your company’s needs with a member of their team, call (903) 794-2211.