payroll schedule
We've been doing our payroll on the 5th and the 20th each month. (ending on the 15th and the end of the month). However, I've recently switched to only doing my bookkeeping on wednesdays, which has been working out fabulously since now I have more time the rest of the week for marketing and other more important tasks.
SO....I have been considering switching to payroll every other week. This means I'd do payroll on the same day every week, rather than now, I have to sometimes do it over the weekend, sometimes because of bank holidays, I have to stay late to get it in to my payroll service on time.
I think the plus could be I'd have the same number of days each payroll which would be easier for me to predict my cash flow.
SO....I have been considering switching to payroll every other week. This means I'd do payroll on the same day every week, rather than now, I have to sometimes do it over the weekend, sometimes because of bank holidays, I have to stay late to get it in to my payroll service on time.
I think the plus could be I'd have the same number of days each payroll which would be easier for me to predict my cash flow.
Replies to This Discussion
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Permalink Reply by Creme'cles Greek God o' Coffee on
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OUr company handles payroll on the 5th and the 20th. As far as crunching the numbers we got spread sheet, as a an employee I don't mind the schedule, because it coinsides with my bill payments.
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Permalink Reply by Mike McGinness on
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Bi-weekly has definite pros & cons versus same days of the month each month. One big pro once employees are accustomed to it is that 2 months each year get 3 paychecks instead 2, so they can seem like extra bonus paydays!
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Permalink Reply by Jason Shipley on
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This also means that 2 months a year you have to pay payroll 3 times. We pay every other Friday it seems to work for our employees.
miKe mcKoffee aka Mike McGinness said:Bi-weekly has definite pros & cons versus same days of the month each month. One big pro once employees are accustomed to it is that 2 months each year get 3 paychecks instead 2, so they can seem like extra bonus paydays!
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Yup, that would/could make it a con from the owners point of view! Personally I run pay periods 1-14, 15-EOM paydays 5th & 19th. I prefer set dates since it makes it easier to budget against other monthly expenses like rent, 941 deposits, sales tax, utilities and insurance.
Jason Shipley said:This also means that 2 months a year you have to pay payroll 3 times. We pay every other Friday it seems to work for our employees.
miKe mcKoffee aka Mike McGinness said:Bi-weekly has definite pros & cons versus same days of the month each month. One big pro once employees are accustomed to it is that 2 months each year get 3 paychecks instead 2, so they can seem like extra bonus paydays!
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Permalink Reply by Jay Caragay on
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I don't really "get" the argument that "set" days for twice a month payroll is somehow "better" from a scheduling standpoint. Certainly, the business gets to hold its cash for a longer period of time but, to my mind, its the employee that suffers. And I would much rather that my staff is paid on a dependable, regular basis than have to stretch their means two months out of the year because its more "convenient" for the company.
To me, I think that plays upon morale in a negative way, as I think that paying my staff on-time and on a regular basis is paramount. I'll make vendors wait in order for my staff to receive their paychecks, if necessary.
Our payroll is paid out on a bi-weekly basis - meaning every other Friday, they receive pay. It's not difficult and it's very easy to set pre-determined dates. I simply draft a Payroll Schedule at the beginning of the year to note the dates the payroll information is due and off we go. No fuss, no muss.
I ask a lot from my staff and expect them to uphold my standards. The least I can do in return is to make sure they're paid on-time and on a regular basis.
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How does paying twice a month on set days versus every other week cause employees to "suffer" or cause them to have to "stretch their means two months out of the year"?
FWIW I've asked my employees and they prefer set days so they know when each month they'll get paid in relation to their monthly main bills.
Jay Caragay said:I don't really "get" the argument that "set" days for twice a month payroll is somehow "better" from a scheduling standpoint. Certainly, the business gets to hold its cash for a longer period of time but, to my mind, its the employee that suffers. And I would much rather that my staff is paid on a dependable, regular basis than have to stretch their means two months out of the year because its more "convenient" for the company.
To me, I think that plays upon morale in a negative way, as I think that paying my staff on-time and on a regular basis is paramount. I'll make vendors wait in order for my staff to receive their paychecks, if necessary.
Our payroll is paid out on a bi-weekly basis - meaning every other Friday, they receive pay. It's not difficult and it's very easy to set pre-determined dates. I simply draft a Payroll Schedule at the beginning of the year to note the dates the payroll information is due and off we go. No fuss, no muss.
I ask a lot from my staff and expect them to uphold my standards. The least I can do in return is to make sure they're paid on-time and on a regular basis.
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Permalink Reply by Jason Haeger on
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I don't know about you, but I buy 5 weeks of groceries every three months or so, because grocery shopping is done on the weekend. Apply the same concept to gas.
Those are timely expenses that require timely payments.
If your employees have to take prescription meds, buy contacts, etc.. this becomes slightly more critical.
miKe mcKoffee aka Mike McGinness said:How does paying twice a month on set days versus every other week cause employees to "suffer" or cause them to have to "stretch their means two months out of the year"?
FWIW I've asked my employees and they prefer set days so they know when each month they'll get paid in relation to their monthly main bills.
Jay Caragay said:I don't really "get" the argument that "set" days for twice a month payroll is somehow "better" from a scheduling standpoint. Certainly, the business gets to hold its cash for a longer period of time but, to my mind, its the employee that suffers. And I would much rather that my staff is paid on a dependable, regular basis than have to stretch their means two months out of the year because its more "convenient" for the company.
To me, I think that plays upon morale in a negative way, as I think that paying my staff on-time and on a regular basis is paramount. I'll make vendors wait in order for my staff to receive their paychecks, if necessary.
Our payroll is paid out on a bi-weekly basis - meaning every other Friday, they receive pay. It's not difficult and it's very easy to set pre-determined dates. I simply draft a Payroll Schedule at the beginning of the year to note the dates the payroll information is due and off we go. No fuss, no muss.
I ask a lot from my staff and expect them to uphold my standards. The least I can do in return is to make sure they're paid on-time and on a regular basis.
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Permalink Reply by Marek on
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We pay every 14 days... up until a few months ago payroll was cut off on Thursday and checks issued the following day.... we recently changed that because it created a problem with people beating on the office door... is it ready yet... is it ready yet... we've changed the cut off from Thursday to Friday... accountant then has the entire weekend to prepare everything... and the checks are now issued on Monday.
The weekend arguement should only apply to the first few checks... thereafter you know when you're getting paid and plan accordingly.
In Cayman we have no income tax... seriosuly... also no sales tax... :) but we have to pay pension and medical for all employees.
We also allow the staff to have access to emergency funds... Insert reason here... wife, baby, car repairs, new apartment ... relatives...
There is also the issue of tips which are taken daily... and are pretty handy for offsetting those dry spells between checks...
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No sales tax? No income tax?
What the hell am I still doing here?!
Marek said:We pay every 14 days... up until a few months ago payroll was cut off on Thursday and checks issued the following day.... we recently changed that because it created a problem with people beating on the office door... is it ready yet... is it ready yet... we've changed the cut off from Thursday to Friday... accountant then has the entire weekend to prepare everything... and the checks are now issued on Monday.
The weekend arguement should only apply to the first few checks... thereafter you know when you're getting paid and plan accordingly.
In Cayman we have no income tax... seriosuly... also no sales tax... :) but we have to pay pension and medical for all employees.
We also allow the staff to have access to emergency funds... Insert reason here... wife, baby, car repairs, new apartment ... relatives...
There is also the issue of tips which are taken daily... and are pretty handy for offsetting those dry spells between checks...
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Permalink Reply by stephanie crocker on
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I was just thinking that it would make things easier on me since for example this weekend, there's a bank holiday, so in order for my bookkeeper to turn around the payroll and still make the direct deposit deadline, I have to estimate hours on Friday so that my employees get paid in time. ALso, sometimes I have to remember to do payroll over the weekend. However, I do agree that the payroll taxes could get a little sloppy as right now, my payroll coincides with the days of the month. So I guess all told, there's pluses and minuses for each scenario.
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stephanie crocker said:I was just thinking that it would make things easier on me since for example this weekend, there's a bank holiday, so in order for my bookkeeper to turn around the payroll and still make the direct deposit deadline, I have to estimate hours on Friday so that my employees get paid in time. ALso, sometimes I have to remember to do payroll over the weekend. However, I do agree that the payroll taxes could get a little sloppy as right now, my payroll coincides with the days of the month. So I guess all told, there's pluses and minuses for each scenario.
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Ja mon;
It makes things so simple. We have a flat tax, everything (except coffee :)... hrm....) anyway, everything except coffee has a 20% import duty... the cost of living is a little higher... but with no sales or income taxes you are saving a bundle on accountants and lawyers.
Life here is really very pleasant ... stop by some time and make yourself an espresso... :)
Marek
Jason Haeger said:No sales tax? No income tax?
What the hell am I still doing here?!
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