When you run a company, you are responsible for a lot more than just the daily work production. You also have human resources obligations such as payroll and payroll taxes.
Payroll frequency is one of the first things you should get a handle on.
Read on so that you can get to know pay frequency, why it matters, and what works best for your company.
What is Pay Frequency?
Pay frequency refers to how often your employees receive their paychecks. This frequency is broken down by the amount of time that passes from one paycheck to another.
Most companies pick a payment model and stick to it so that they have clean records and regularity within their business.
Why is it Important?
Getting to know pay frequency is critical because it dictates how you handle your business accounting and sets an expectation that your employees will grow accustomed to. Certain industries tend to veer toward one method of pay frequency or another.
Setting and sticking to a pay frequency is also critical to make sure that you’re staying within the law, as laid out by the United States Department of Labor. Choosing a workable solution adds a layer of transparency to your company, which grows trust between you and your workforce.
This allows you to hammer out the business end of things upfront so that you and your employees can go about your work knowing everyone is being paid frequently and fairly.
What Types of Payroll Frequency Work Best?
There are several pay frequency options available. The most common forms of pay frequency include weekly, bi-weekly, semi-monthly, and monthly.
Companies that pay out weekly set a day of the week in which employees receive direct deposits or physical checks. Bi-Weekly pay frequency happens every other week. You will need to stay on top of the details with bi-weekly payments so that you don’t get confused during months that have three pay periods.
Semi-monthly payments are similar to bi-weekly, except for the fact that employees get paid on specific dates, rather than strictly every other week. Monthly pay frequency is the least common. With monthly payments, employees get bigger checks, though they will have to manage their money better in the interim.
When you consider these tips, make sure that you get to know the pros and cons of each option so that you can figure out what is best for you.
How Can I Get Help With My Payroll Needs?
The best thing you can do is hire the help of accounting and payroll experts that can help you through every obstacle. They can help you get to know payroll tax and other issues that affect the way you do business.
There are also a variety of payroll check templates to choose from, so don’t hesitate to look around. No matter what you choose, make sure that you are deliberate and consistent about your payroll issues.
Address Your Payroll Head-On
Pay frequency is a foundational piece of the puzzle for your business. Don’t hesitate to get the help of some professionals that can assist you.
Check back for more info on payroll, accounting, and a wide variety of other business matters.