Is it possible to reduce payroll cycles?

If your company pays hourly employees weekly and salaried employees twice a month, you may choose the single payroll cycle to give payroll staff more time to improve their basic skills as it eliminates 50 percent of the payroll processing. To implement this best practice, employees have to be well notified as it will impact some employees spending habits and some may have difficulty for their payments. So advanced payment should be available for a period of time. Also compared to salaried employees, hourly employees require much more time of labor when processing payroll. Payroll data is generally unchanged every pay cycle for salaried employees but each pay cycle, the number of hours worked by hourly employees must be calculated. Switch as much as possible hourly employees to salaried employees is the best practice. Please note: local laws or unions may be opposed to the practice.

             Main Menu            

1. In-House Payroll vs. Outsourcing

2. Accumulating Time

3. Payroll Deductions

4. Direct Deposit

5. Payroll Cycles

6. 401(k) Plan

7. Payroll Forms

8. Payroll Resources

News & Discussions:

Pay attention to pay cycles

When SCT Corp. of Malvern, Pa., decided to look at its payroll operation several years ago, one of the practices it scrutinized was its use of dual pay cycles. Some of the company's employees were paid biweekly, others semimonthly.