Magazine article HRMagazine

How Frequently Should Employees Be Paid?

Magazine article HRMagazine

How Frequently Should Employees Be Paid?

Article excerpt

Many state laws detail when employees must be paid for the hours they have worked. These state wage-payment laws might dictate the employer's pay frequency. Employers may choose to pay workers more often than their state law requires, but not less frequently.

Employees are generally paid weekly, biweekly, semimonthly or monthly. Employers should consider the pros and cons of each to decide which is best for them.

Weekly or biweekly. While employees generally like being paid more often, it costs employers more to do so. Payroll companies typically charge based on each payroll that is run. If the payroll is processed internally, employers need more staff and more hours to issue paychecks weekly. There also is more potential for errors. On the plus side, it's easier to calculate overtime when nonexempt employees are paid weekly or every other week.

Semimonthly. Employees paid semimonthly receive checks two times a month on specific dates-for example, the 15th and the last day of the month. Accountants usually like that the end of the pay cycle coincides with the end of the month, which is aligned with monthend and year-end accounting processes. …

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