Fact: People like schedules as they provide a sense of security, leave less room for error, keep things organized and running smoothly. For all those reasons and more, your clients choose to follow a schedule to pay their employees.
So how do you help your clients choose a payroll schedule best for them? There are lots of options for you and your clients, but the most common payroll schedules are bi-weekly and semi-monthly.
Let’s take a look below to further examine these options.
Bi-Weekly Payroll Schedule
On a bi-weekly pay schedule, two months out of the year, employees will be paid three times rather than two. During those few occasions, accounting departments must prepare budgets in advance so all three checks are accounted for in the appropriate month.
Also, accounting departments must manage employee voluntary health care benefit deductions, which are dependent on the number of pay periods in the year. In some years there will be 26 checks cut, and in other there will be 27.
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About Todd Waletzki
Todd Waletzki joined BenefitMall in March 2015 as the chief operating officer of Payroll. He brings more than 25 years of finance and payroll-related experience.