What’s The Best Payroll Schedule For Your Business?
Today’s workforce is most familiar with a bi-weekly pay schedule–receiving a paycheck every two weeks. But let’s find out if that schedule works best for your particular company.
Every pay schedule has its benefits and drawbacks. Larger companies who pay employees weekly, and use a payroll company, will typically be charged up to a $2 fee per employee deposit. These fees can really add up! However, for a smaller company, with limited cash flow, a bi-weekly pay schedule may work best—cutting weekly deposit fees in half and letting you better predict your monthly budget. Consider the number of employees and your cash flow patterns before deciding which schedule works best for you.
NOTE: Fingercheck waives all deposit fees regardless of your company pay schedule.
Another advantage of a weekly pay schedule is that it can actually be easier to figure out than a bi-weekly one. You can designate the same day each week to complete your payroll, as opposed to running a more complicated payroll every 2 weeks (increasing the potential for errors). Weekly pay also works better on an hourly pay structure that is usually uneven, allowing you to manage each week as its own separate unit. Plus, many employees prefer the frequency of weekly pay!
No matter what payment schedule you choose, it will become irrelevant if your payroll isn’t accurate. Because of this, more and more companies opt to outsource payroll due to complicated calculations needed on taxes, PTO, and other wage-related deductions.