Choose a Payroll Schedule for Your Small Business

In the simplest terms, Payroll Preparation Services frequency is how often you pay your employees. All employers follow a set payroll pattern so that the employees working under them can expect to get their payment in a set schedule. When business owners decide to branch out beyond themselves and hire employees, one of the key decisions they need to make is how often they are going to issue Payroll Accounting Services. There are many options available for the payroll schedule. Does the main question arise which payroll schedule to use? 

There are four types of payroll periods that employees have come to expect. Individual payroll has different pay dates and is benefiting each employee in its own way. Although some businesses have both hourly and salaried employees, almost all companies use the same pay period company-wide. There are four common types of payroll schedule frequencies in the United States: weekly, biweekly, semi-monthly, and monthly

. • Weekly: Once a week on a specific day e.g. Thursday (52 periods per year). 

• Bi-Weekly: This means payroll is in a span of two weeks on a particular day of the week. , e.g. Friday (26 periods per year).

 • Semi-Monthly: Twice a month on two specific dates e.g. the 1st and the 15th (24 periods per year).

 • Monthly: Once on a specific date e.g. the 25th (12 periods per year). 

Weekly payroll 

Pros:- 

• Employees get paid frequently and on a predictable schedule which helps them to manage the money better. 

• It’s easier for employees to see their overtime earned on weekly paychecks. 

Cons:-

 • Employers have to spend time on payroll every single week

. • Payment pattern at times can be costing a fortune and can consume a lot of time for the accountants conducting it 

• All payroll processing companies charge fees to run individual payroll 

• This is expensive for online payroll services for small business. 

Bi-Weekly Payroll 

Pros:-

 • Employees get paid on a predictable schedule.

 • Employees they save more time and their money on payroll processing with weekly pay periods.

 Cons:- 

• Leap years upload a further annual pay length every eleven years.

 • Biweekly payroll could make month-to-month budgeting trickier. 

• Bi-weekly pay periods might also be inconvenient for employees because paychecks will come on different days of each month. 

Semi-Monthly Payroll 

Pros: -

 • Employees know the Date of receiving the payment

 • Employers store greater money and time on payroll prep than with weekly pay periods.

• Employees don’t earn overtime, so they aren’t concerned with those calculations.

 • It is simple for the accountant too since the end of the second period coincides with reporting and deductions. 

Cons:- 

• Leap years upload a further annual pay length every eleven years

. • Biweekly payroll can create the monthly budgeting challenging.

 • For hourly workers who make beyond regular time, though, this paying schedule might be confusing.

 • Understanding beyond regular time calculations with month-to-month and semi-month-to-month pay intervals is an assignment due to the workweek

 Monthly Payroll 

Pros: -

 • Employers can save more on payroll expenses.

 • The accountant runs reports at the end of the month, and also makes deductions at the end of the month.

 Cons:- 

• Employees might have a harder time budgeting. 

Which Payroll schedule to use?

 It all depends on how your small business is structured. A bi-weekly payroll schedule is ideal if most of your workers are paid by the hour because it is relatively easy to calculate overtime plus employees generally look forward to the “extra” paycheck that rolls around twice per year. On the other hand, if most of your employees are salaried, then running payroll semi-monthly would be an ideal choice since you do not need to worry about overtime calculations. Processing time and costs tend to be quite low with this option as well. 

The Best online payroll services for small businesses  are Paylocity software, Paytech which offers a variety of payroll solutions to help you pay your employees on time, every time. You’ll no longer have to worry about filling out the right forms for new hires, calculating overtime and paid time off, or missing a payday because of a holiday. Hiring Paytech for your payroll management means your employees are paid, your payroll taxes are calculated correctly, and you can focus on doing what you do best — running your business.