How Often Should You Pay Your Employees?
If you’re a business owner, deciding when to compensate your employees involves more than selecting a weekly, bi-weekly or semi-monthly pay period. Several factors can influence which time frame is the best strategic move. Here are some guidelines to help you select your preferred payroll service schedule.
Weekly
On this payroll schedule, company employees are paid once a week. Friday is the most common payday, and staffers receive a check each week during the year.
Weekly distribution schedules are typical for companies with a small number of hourly workers because payroll calculations are more straightforward, and it’s easier to factor in overtime hours.
While the frequency can be beneficial to employees, business owners may face tighter deadlines to accurately calculate hours.
Bi-Weekly
Bi-weekly is likely the most common payroll service schedule. Employees receive compensation every other week for a total of 26 paychecks for the year.
Companies may prefer this payment schedule because it provides additional time to accurately reconcile hours. If your business does direct deposits, the additional week also allows for more processing time to distribute funds to employees’ checking accounts.
Semi-Monthly
On this schedule, employees are typically compensated twice a month. The most common payday dates are the 15th and the last day of the month. A semi-monthly schedule offers many of the processing benefits of monthly schedules with enough flexibility to accommodate hourly employees who work overtime.
Talent HR Solutions in Honolulu, HI, is your trusted resource for choosing the ideal paycheck distribution period. For nearly 17 years, the professional employer organization has assisted a wide range of businesses with everything from recruiting to payroll services. To provide customized care, the firm’s worksite employee-to-client ratio is smaller than their competitors’. Call (808) 354-0498 to learn how the HR services specialist will assist with payroll processing. Visit the website for additional information on their capabilities.
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