Choosing the right payroll frequency is a crucial decision for employers, as it can significantly impact both your employees and business operations.
You Need To Know Both Federal And State Laws Governing Pay Intervals.
- While federal laws don’t specify pay frequency, they do prohibit arbitrary changes in pay schedules and non-payment of overtime.
- State laws can vary, so research is essential.
Common pay frequencies include weekly, bi-weekly, semi-monthly, and monthly.
- Weekly payments are common in blue-collar sectors but can be administratively burdensome.
- Bi-weekly payments offer a balance of predictability and manageability.
- Semi-monthly payments, typically on the 1st and 15th, are easier to manage but may require adjustments for weekends and holidays.
- Monthly payments are simplest for tax purposes but may not be ideal for employees who prefer more frequent paychecks.
Select a schedule that meets your business needs while ensuring compliance with laws and employee satisfaction.
Original content by the Drip Marketing Inc.. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.
