Determining if your company should run weekly payroll may feel complicated. For some small businesses, every decision that make can feel like a big one. As you arrange your company’s payroll schedule, consider certain important factors. These factors will include payroll cost, taxes and benefits, employee attitude, and Department of Labor regulations.
Above all else, remember that what works for other companies may not make sense for your workers. We have broken down the different payroll timeframes and what each of them can mean for businesses.
Why Run Payroll Weekly
If you choose to run payroll on a weekly basis, consider your company’s type of employees. If you have hired hourly workers, a weekly payment plan makes sense for them. If you select a reliable payroll service, you also will not spend a lot of money. However, weekly payroll does typically remain more expensive. Payroll companies often charge companies each time they process payroll. If you run a small business, it can become prudent to select your own payroll software rather than outsourcing.
Should My Business Run Biweekly Payroll?
Sometimes implementing a biweekly pay schedule makes sense for a company. The company will pay its employees twice a month on the same day of the week. The payroll processing method is ideal for businesses who have hired hourly and salaried employees. Make sure to consider how the method might affect benefits-related costs or any outstanding taxes.
Is Semimonthly Better than Weekly Payroll?
A semimonthly pay schedule means that your business pays workers two days in a month, similar to a biweekly schedule. However, the company will select two specific dates, like the 15th and the 30th, for the pay periods rather than the first and third Friday. Always review healthcare costs and regulations before selecting a semimonthly payment schedule.
When Does Monthly Payroll Make Sense?
Small businesses tend to steer clear of a monthly pay period. Alternatively, it may make sense for your business if you employ independent contractors or freelance employees. One of the downsides is, the state regulates a monthly pay schedule more than the other payment plans.
Benefit of a Weekly Pay Schedule
While these other payment schedules are available, sometimes weekly payments make the most sense. An additional benefit is that as an employer, you will not need to worry about prorating a new employee’s pay period. Typically, you will prorate their first paycheck if an employee begins in the middle of a long pay period. Tracking hours gets more complicated during longer pay periods. A weekly schedule eliminates these payroll concerns.
Why Use Advanced Micro Solutions Payroll Software
Our accounting and payroll software provides a mix of payroll reports. These include a payer/tax summary, employee detail, and worker’s compensation. The software also shows different state and federal tax liabilities when users select the View command at any given time. Regardless of whether your business runs weekly payroll, make sure to find reliable software. It will help minimize your stress and time spent managing each payroll cycle.