Choose an Employee Pay Schedule

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Although Monchilla supports any conceivable pay schedule, consider the following:

  • Paying employees on the same day of the week allows you to schedule payroll-related tasks on the same day of the week, and is generally easier to keep track of for you and your employees.

  • Using a schedule that has the same number of work days in every pay period ensures that taxes based on the number of hours an employee works (e.g. State Labor and Industries tax) or the expected annual salary of the employee (e.g. Federal Income Tax) will remain the same for each check.  This means the net pay the employee receives doesn’t change from check to check.

  • You will need some time between the end of the pay period and the paycheck date to update and issue the checks and allow for the direct deposit lag (it takes a few banking days to get the funds into the employee’s account).  A one or two week lag is typical.

Recommended Pay Schedule:

For these reasons 90%+ of businesses pay employees every other Friday with a 7 to 14 day lag.  This means that if the first day of the pay period is Monday January 6th 2014, the pay period end date would be Friday January 17th, and the paycheck date would be Friday January 24th for a seven day lag.  This pay schedule is biweekly (because employees are paid every two weeks).

In Monchilla, this pay schedule looks like the following:

If you need to pay employees more often, consider paying employees every Friday with a 7 to 14 day lag.

If you want to pay employees less often, consider paying every 4th Friday (instead of monthly) with a  7 to 14 day lag.

For more help configuring your employee pay schedule, see Configure Pay Schedules.

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