Whether you’re starting a new company or you’re trying to develop a better strategy for your company’s payroll, there are a few things to keep in mind. This includes the state your business is presently in, the types of workers you have, and when you are able to push your workers’ paychecks through.
Here are some starting points that will help you find the right payroll schedule for your company.
View your state’s payday requirements
Did you know that each state has a set of specific requirements when it comes to your workers’ payroll? The United State Department of Labor features a graph that shows specific regulations around payroll. This should be your first step, which might narrow down your options.
Analyze your workers’ hours
Most companies have full-time, part-time, and perhaps even workers contracted by the hour (aka freelancers). It’s important to take inventory of this before determining your payroll system. If you’re working with freelancers, for example, you’ll want to understand the time-card approval process your company is currently using.
Decide the payment cadence
When putting together your payroll schedule, the biggest question might be how often your workers are paid. Some companies, including non-profits, have specific guidelines, such as only having the option to pay full-time employees once per month.
If your business has options, consider which system is best: weekly, bi-weekly, monthly, or bi-monthly. There are pros and cons for each, however, you could also send a survey to your workers to collect their preferences. This might also help you decide what day of the month will be payday.
After the payment cadence, it’s time to decide when your workers will be paid, versus how often. If you have to approve hours in order to issue paychecks, give yourself or your accountant plenty of time.
According to the Bureau of Labor Statistics, “36.5 percent of U.S. private businesses [pay] their employees every two weeks.” Fridays are common for paydays, although it will vary depending on your cadence. Although your workers might have preferences, you’ll want to consider what’s best for your organization as well.
All-in-one payroll management solution
If you’re looking for another way to help organize your payroll system, consider a payroll management system that will take the hassle out of paying your workers. PayReel offers an innovative solution to aid companies with managing freelancers, ensuring they receive their payments on time. Our paperless payroll system meets state regulations, and it delivers payments efficiently and with ease. You no longer have to worry about all the details — we do the hard work for you.
Your specific payroll strategy will depend on your state’s requirements, your accountant’s suggestions, and what’s best for your business overall. Read more tips for payroll management!
If your company is looking for a payroll management system, it would be worth considering an Employer of Record (EOR) who can handle all of your business’ payroll, employee tax work, benefit management, compliance and worker classification. Payroll is simply the tip of the iceburg when it comes to business needs in employee management and support. Think about all of your company’s short and long-term goals when selecting the best payroll management system and EOR for your business.
Learn more about how PayReel can simplify your payroll and worker management processes.
At PayReel, we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.