Managers and small business owners have limited options when it comes to managing payroll. They can hire an accountant or a bookkeeper to help automate certain activities with payroll software or online payroll, or take a DIY approach using a combination of tools and templates.
Payroll templates provide simple solutions for organizing programs, tracking employee information, calculating payroll costs, and providing detailed income statements.
Payroll accuracy is Key
Keeping correct records is an essential feature of payroll management. This is important not only for businesses but also for meeting federal and state requirements. One of the benefits of using a payroll service is that contractors can authorize someone else to enforce laws and regulations regarding the retention of source documents and other information to be monitored. Keeping proper records can protect employers and employees by providing documentation to help resolve disputes and prevent legal issues. Also, appropriate data collection makes it easier for employers to provide information on deduction amounts, accumulated vacation, and other items that employees may need.
Bi-Weekly Payroll Calendar
One of the first concerns your new business is likely to face is the pay period: do you have to pay employees every week, every two weeks or monthly?
It is vital to note the needs of employees and human resources managers. In other words, what is the most straightforward system for dealing with the human resources team, and what will make most employees happier?
Temporary staff, interns, and student employees are paid bi-weekly. The bi-weekly salary scale indicates the start and end of each two-week work period and the corresponding payment date.
Biweekly payment is the most common option for a corporate payment period in the United States. Paying two weeks means that you pay employees on a fixed day every two weeks, which translates to 26 salaries per year. Since the payment day appears biweekly, some months will have three payment packages. It can be useful every two weeks if most of your employees work on time. Also, your employees will be happy to receive a more frequent payment (instead of monthly), and using a biweekly template can help relieve you of the stress of these payments.
- Employees like to be paid more often
- It works well with a high percentage of employees per hour
- More time/profitability than weekly payment
- Managing monthly premiums in the biweekly program can be tricky
- Administrators should pay close attention to payment data to accurately process payments on schedule
Weekly payroll calendar
A payment period is a recurring period during which the employee’s time is recorded and paid. Examples of payment periods are weekly, biweekly, and monthly.
A weekly pay period involves 52 salaries per year. Hourly workers are generally paid weekly. Sometimes these employees are a week late. In other words, they register and submit their timesheets at the end of a week and are paid for this period a week later. This gives the personal employee time to calculate their salary.
- Many employees like to pay weekly.
- Keep a constant flow of cash in your bank accounts, which can ease the financial budget for your household.
- Calculating overtime is a simple process if you have full-time staff. Since the pay period coincides with the workweek, it is easy to estimate any additional wages. In the case of monthly payment periods, the first and last week of the month is usually partial weeks, which can make calculations difficult. Weekly payment periods also facilitate card expiration periods or hourly reports. The expiration date remains the same each week until the payment is issued on the same day of the week. Every month, the payment delivery threshold may vary from month to month, depending on when the end of the month decreases.
- One of the main disadvantages of weekly pay for you as an employer is time and costs. Since you have to run the salary every week, this can distance you from other activities or mean that your employee is withdrawn from other activities. If you hire someone to earn a salary, they will be paid every time they run, which will increase your overhead costs.
- More frequent distribution of payments can also result in costs if traditional paper checks are issued, spending money on the control modules and the ink to print them. You may be obliged to pay a small deposit fee depending on the service used if you use direct deposit. The payment of these commissions increases every week.
Payroll Template Tips
Using templates is a quick and easy way for small businesses to standardize their payroll processes. Automatic and preformatted calculations can save you time by allowing you to make changes based on your specific needs. Decide what information to include in the templates can raise questions about payroll policies, especially if you are starting a new business. It is essential to define strategies and train staff in rules and options. When you select the templates and start using them, try:
- Accuracy: after adjusting a template that suits your business, check all the information included to make sure nothing is left off. The templates should be easy to understand and use for employees, so keep it simple and only include fields to enter vital information.
- Efficiency: will the template increase productivity, saving time and money, or merely adding a trace of paper? Be sure to choose pay models that are compatible with your workflow.
- Customization: Payroll templates are suitable for various configurations, but can be particularly useful for small businesses that do not need more complex payroll systems. Even small companies can vary widely by location, industry, and size; therefore, adjusting the templates according to their specific situation will provide optimized tools that can be adjusted according to changes in their activity over time.
You must choose the payroll template that best suits your business, and continually pursuing it is even more critical. Choose a template that allows you to easily monitor the start and end dates of the payment cycle and payment dates, so you never lose your paycheck and run your salary at an inappropriate time.