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BY Judah Hirsch Attendance
Choosing the best payroll schedule plays a major role in every company. It doesn’t just help you figure out when you should pay the employees, but determining the schedule that best fits the company can affect its net income based on its payroll and payroll taxes. It also affects employees as these are the people who’ll always respond to any payroll errors and delays.
Before we head down to the commonly used payroll schedules, let’s take a look at the first few steps you need to look at in order to easily pick the right payroll choice.
If you have every bit in place, the next step is to figure out the payroll schedule that suits the business.
Weekly, bi-weekly, semi-monthly, and monthly are the four common payroll schedules you can choose from. Others can even make a combination depending on an employee’s status.
It’s good to take note that every time a payroll is processed, there is a cost incurred. The fewer payroll processed is equivalent to more savings. However, it’s not recommended that you jump to a monthly payment.
Check what happens on each type of schedule and the benefits it can provide the company.
On a weekly payroll, the employees are paid on the same time every week. This is the most preferred option when it comes to paying construction workers, plumbers, electricians, and other hourly workers with varied working hours.
With the bi-weekly option, employees are paid every other week, usually done every other Friday.
Semi-monthly payroll means paying employees twice a month, usually on the 15th and the 30th.
The least popular option, the monthly payroll schedule, simply means paying employees once a month. This process is used by some government agencies and universities.
After choosing the best payroll schedule that is both compatible with the company and employees, the last step is to find a reliable payroll system that can make computing payroll way easier than doing that time-consuming manual payroll computations.
Salarium is not your ordinary software that sticks to tracking employee attendance and requests, but also makes computing payroll for thousands of employees quick and easy with just a few clicks.