How To Pick The Best Payroll Schedule For Your Business

Most individuals like schedules. They provide a sense of security knowing what is coming and when. Plus, schedules leave less room for error and keep things organized and running smoothly. It’s all those reasons and more that companies choose to follow a particular schedule in order to pay employees. It benefits the company and it benefits the employees. So how do you choose which payroll schedule is for you?

There are lots of options, but the most common payroll schedules are bi-weekly and semi-monthly. Let’s take a look at the pros and cons of both.

 

Bi-Weekly Payroll Schedule - The Facts

o Paid every two weeks

o 26 payments in one year

o Completed Form I-9 verifying eligibility to work in the United States

Pros

  Cons

Employees get paid three times a month, twice a year

 

But...

 

Accounting departments have the added stress of prepping advanced payments so all three checks hit in one month

In some years employees are paid 27 times rather than 26

But...

Accountants have to handle voluntary health benefits which depend on the number of pay periods

Hourly workers can collect overtime pay

But...

While it’s a simple calculation, it is an added step in calculating payroll

Consistency - good on all fronts But...

There is no but!

 

Semi-Monthly Payroll Schedule - The Facts

o Paid two times a month

o 24 payments in one year

Pros

  Cons

Easy on accounting departments – monthly reports, health voluntary deductions and the second check all are run at the end of the month – kill three birds with one stone 

 

But...

 

Hard to calculate overtime pay for hourly workers due to extra hours overlapping pay periods

Easy to consistently run payroll at the end of the month each month

But...

Irregular pay schedule 

 

If you still aren’t happy with those options, there is always a weekly payroll schedule. 

o Consistent but may not be as cost-effective

o Hours calculated weekly

o Payment occurs same day each week

 

BenefitMall Payroll Schedules

So which one works for you? As a small business owner, you need the consistency and set plan not only for keeping payroll reporting streamlined and accurate, but to also give your employees stability and consistency. With BenefitMall, we make it easy to set up your payroll with our online software and choose a payroll schedule that is best suited for your company. Not only do we make these choices simple, our top-notch payroll software makes payroll reporting, tax compliance and HR administrative tasks easy again. Let us set it up for you! 

Call us anytime, and we can streamline the onboarding process to alleviate the time and headache associated with the administrative tasks that all businesses face.

See how PayFocus can streamline your payroll & HR tasks here