What is the Best Frequency for Payroll Processing?


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When you have a team of employees, running payroll is a never-ending task. Your employees need to know when they can expect their paychecks. At the same time, you need to maintain consistency with payroll processing to support employee morale. If you are late with payroll processing, then it breaks down trust and leads to dissatisfied employees.

Mark Rowley, Owner
RandR Payroll Services

Options for Payroll Frequency

The frequency of payroll processing should depend on the size of your company and the type of employees that are working on your team. You need to set a schedule and communicate the payroll processing details to everyone in the company.

These are four payroll schedules that you might consider:

  • Weekly
  • Every Other week (Biweekly)
  • Twice a Month (Semi-weekly)
  • Monthly

There aren’t any federal laws that manage payroll frequency. But, local state or city laws might impact your pay schedule. So, it is important that you talk to an experienced payroll team to learn about the requirements for your area.

Benefits of Shorter and Longer Pay Periods

There are pros and cons to all of the payroll schedules. When you offer a short pay period, such as weekly or biweekly, it means that you will be processing payroll frequently. Not only will it increase the workload, but you also need to consider the costs that go into payroll processing. At the same time, fast pay periods often increase employee satisfaction because of the quick turnaround time for their paychecks.

On the other hand, semi-weekly or monthly schedules can reduce costs because you don’t have to complete the payroll processing as frequently. But, a long time between paychecks might increase the risk that small details get lost along the way. If there is a discrepancy with the employee’s hours, then it is hard to remember the details of a workday that happened three weeks ago.

Customizing Your Pay Schedule

There isn’t a right or wrong answer when it comes to pay schedules. Instead, you need to consider the needs of your company and talk to an experienced payroll processing team.

The best solution is to hire a payroll service so that you don’t need to worry about the logistics of payroll processing. For more information, contact R&R Payroll & Bookkeeping Services: (951) 296-0412.