Setting up a pay period is essential for every business no matter how many staff members you have. If you do not have an organised payroll schedule, your business could have several disadvantages and your staff may not be too happy. Our blog discusses why and how you should organise a schedule…
Coleman & Co have many years in planning and organising the payroll of companies across various different industries and we can make sure you have the right payroll control.
How Often Should You Pay Staff?
There’s little argument to say that staff do not prefer being paid more frequently. Everybody loves payday and if it happened every week then your workplace may be a happy and positive place – however regular paydays may not always be the best option for your business.
There are several options when selecting how often you want to give out payroll. This could be weekly, bi-weekly, semi-monthly or monthly and making sure you are not wasting too much time organising payroll can be a big factor in deciding which one to choose.
Benefits & Drawbacks
No matter what length of time you take to distribute your payments, each schedule has both benefits and drawbacks – it’s important you understand this to choose the right schedule. The main benefit of having payroll once a month is that it saves you time. Calculating payments for four or five weeks all at once may take longer than a weekly payment, but completing it weekly or fortnightly means organising this much more frequently.
Monthly payments mean one pay check per month. Everybody knows where they stand with this system but if you were to choose bi-weekly, this could mean some months, three payments will be given out and others just two. Payroll should never be out of your control as staff expect it to be spot on every single time.
Keep Your Staff Happy
Happy staff means a happy working environment, whether you are a business owner or not, this is something that you want. It may be a lot easier to manage your payroll by doing it monthly, especially if you must manage commission and bonuses which could become hectic week upon week.
Despite this, your staff want to be paid as much and as frequently as possible. Trying to find the right balance is seemingly impossible, but it can be done. By having a monthly payroll schedule, it means that staff only get paid once every five weeks in some months, this can lead to a lot of stress and financial strain and actually reduce the productivity of your business.
Keep productivity high in the business and maintain a high morale among your staff members; paying them more frequently might just be the best option for your business!
Avoid Errors
On the other hand, making payments correctly is a lot more important than making payments frequently and staff will be extremely unhappy if they get the wrong payments. Even if you do decide to distribute bi-weekly, you have to make sure payments are perfect.
One way to do this is through computerised accounting systems. Whatever schedule you decide on, computerised accounting systems will help you input figures and data correctly and manage your payroll whenever you require access to it. These systems do it all, whether you need to organise payroll for hundreds of staff members or calculate the tax deduction from every wage, you need these systems.
Payroll Scheduling Conclusion
There really isn’t a correct decision on what schedule your business should choose when it comes to payroll. Making sure it is organised and there are no errors may take more time and allow less frequent payments. If you want to keep the morale of the office high and ensure staff know what they should be paid every couple of weeks, bi-monthly may be the best option. As long as you pay everyone the correct amount, frequent payments are the way to go – But the choice is yours!
Contact Us
For more information on how to organise your payroll schedule or to outsource your payroll to trusted professionals, do not hesitate to get in touch. Coleman & Co have expert accountants available to help every business, so call us today on 028 9266 3599.