The Advantages of a Weekly Payroll Schedule
A weekly payroll schedule has a number of benefits for both employees and business owners. One of the most important administrative tasks for a business, arguably, is setting up payroll. Every business must decide which payroll schedule is the best for their company and employees. Below, we explain the advantages of a weekly payroll schedule.
State laws will typically require a frequency for businesses to pay employees, and employers have the option to pay more frequently, but not less. Some companies may opt to pay their employees on a monthly or biweekly basis, but read on to learn why a weekly payroll schedule is truly beneficial for both businesses and workers.
The Advantages of a Weekly Payroll Schedule
By choosing a weekly payroll schedule instead of a monthly or biweekly option, businesses of all sizes reap a number of benefits for themselves and for their employees
Advantages for Business Owners
Planning Payroll Is Easy
With a weekly payroll schedule, processing your employees’ hours becomes both simplified and organized. Payroll submission is consistent and always on the same day of the week, so it is easy to implement an administrative schedule. There is never any confusion about when time cards need to be submitted or when that paperwork must be completed.
Businesses that opt for longer pay periods may find that their paydays and payroll submission dates vary from month to month, which can be confusing for employees and tricky for payroll administrators. When holidays and days off are added to the mix, administrators may need a separate calendar just to keep track of pay periods. And if pay periods are confusing to the administrators, employees are almost certainly confused as well and may misreport their hours because they aren’t clear on when the pay period stops and ends.
Businesses that pay their employees only twice per month may have to track down employees to verify time worked from weeks earlier in the pay period. In a larger organization, adjusting the hours worked for multiple people could bog down a payroll administrator and keep them from getting the information submitted on time to pay the employees. With a pay period of only one week, any discrepancies in hours can be easily rectified, even in larger organizations.
New Employee Pay Periods Won’t Need To Be Prorated
If a new employee starts during the middle of a long pay period, it’s up to the employer to prorate that first paycheck and track that individual’s hours to ensure that they get paid for the amount of time worked. The longer the pay period, the trickier it becomes to keep track of those hours.
With a weekly payroll schedule, this problem is completely eliminated. The new employee is simply paid for the number of hours or a portion of the pay period worked during that first week. This relieves the payroll administrator of the inconvenience and hassle of having to prorate any checks.
Employees Want Weekly Payroll
Simply put, people like getting paid! The frequency in which an employee is paid can go a long way to building trust and morale with that employee. The consistency of a weekly paycheck allows employees to rely on this income without even being aware of it. Employees who feel secure in their financial situation are more likely to have favorable thoughts about their place of work, which leads to loyalty and long-term employee retention.
Advantages for Employees
Employers aren’t the only ones reaping the benefits of a weekly payroll schedule. Both hourly and salaried workers enjoy more frequent paychecks.
Frequent and Consistent Paychecks
Once- or twice-a-month paychecks can put a financial strain on your employees. Weekly paychecks can help hourly employees meet their real-time fiscal obligations. Salaried employees enjoy weekly paychecks as well.
The consistency of weekly paychecks helps employees budget for recurring expenses, too. If bills are due throughout the month, monthly or bi-weekly paychecks may not time out well in order for employees to handle those expenses.
Paychecks Reflect the Work Week
Weekly payroll can help employees with irregular schedules and those who work overtime. For example, if an employee works 50 hours one week and 30 hours the next week, weekly payroll ensures that your employee is paid their overtime faster. Simply put, weekly pay matches any inconsistent flows of work.
Let Canal HR Handle Your Company’s Payroll
No matter what type of payroll schedule your business opts for, Canal HR is here to help. Hundreds of businesses already trust us with their payroll duties and we’d be honored to earn your business and trust as well.
In addition to payroll, we offer numerous other services, too. Our business can take care of your workers’ compensation insurance policy to make sure that you and your employees are protected in case of a workplace accident. We have an attorney on-hand in case your business ever needs legal expertise for any reason.
Canal HR is also proud to offer our clients the following benefits:
- Insurance policies for your employees, such as medical, disability, and dental insurance
- Guidance on HR compliance
- Employee assistance program
- Physical exams, background checks, and drug tests
- And other administrative services
As a business owner, you have enough to think about when it comes to managing the day-to-day and big-picture operations of your company. Here at Canal HR, we’d be delighted to make your business life a little easier by helping with your payroll, HR, and administrative responsibilities. Contact us today to learn more about how we can benefit your business.