What's a good pay schedule for my company?
A pay schedule is the combination of two things - a pay period and a pay date. The pay period refers to the amount of time an employee works. The pay date refers to the day your employees get paid.
There are a few things to consider when selecting a pay schedule for your company:
- This refers to how often your employees get paid. Common pay frequencies include weekly, biweekly (every other week), semimonthly (twice a month), and monthly.
Delay between pay period and pay date
- If you have salaried employees you probably won’t have a delay between the end of the pay period and the pay date, because you already know how much you’re going to pay them - it never changes.
- If you have hourly employees you may need a delay between the end of their pay period and the pay date. You would use this time to gather their hours and process your payroll accurately. This is very common for hourly employees and is also called getting paid “in arrears.”
- Each state has it’s own laws around what is a compliant pay schedule. They typically govern how long the delay between the pay period and the pay date can be, along with how frequently you must pay certain types of employees. It’s important to check the laws in your state to make sure you are staying compliant when you pay your team.
Once you choose your preferences for the pay period and date (and make sure they are legal in your state) you are all set! Go forth and pay your employees.