There are many things to consider when changing or setting up your payroll. Deciding on a pay schedule is a big one, as it can affect your employees and your accounting department. More importantly, communicating that pay schedule (or the changes to it) to your employees will save you from a headache and a lot of time spent answering questions.
Employers generally have pay schedules that are weekly, bi-weekly, semi-monthly or monthly. Once you’ve decided how to set up or change your schedule, the next step should be making sure all of your employees understand the terminology behind the scheme and when they can expect checks.
Let’s look at bi-weekly and semi-monthly payments, as the difference between the two can often cause confusion:
Bi-Weekly Approach – Employees receive 26 paychecks ppayroller year and are paid every two weeks.
Semi-Monthly Approach – Employees receive 24 paychecks and are paid twice a month.
Although this should come as a given, it’s important to communicate that regardless of which pay approach you implement or change, the overall salary received will be the same. The only difference will be in the check amount they receive.
Avoid a barrage of questions from unhappy employees when they notice changes to their paychecks that they don’t understand. Be proactive with your communication and don’t assume everyone understands a payroll schedule or knows what to expect from one.
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