As a new small business owner one of the biggest challenges you may have right out of the gate is determining the ideal payroll schedule. To put your schedule on track you must consider a number of factors. From state regulations and overtime rules, to types of employees and cash flow the challenges and concerns are many.
Deciding on when to pay your employees is based upon what is best for both team members, managers and employees. You don’t want to process payroll too often because that can certainly cause a great deal of work for your payroll staff. On the other hand, if you don’t pay employees on a consistent often schedule, it could ultimately result in employee departures and even poor employee morale. The decision can surely be a difficult one, but is most definitely a necessary one.
Here in the United States, there are a number of options to choose from when it comes to paying your employees. You can choose from weekly, biweekly, semi monthly or monthly. Some states, however, do not allow monthly payroll schedules where other states do not allow weekly pay periods, so it is important to familiarize yourself with your own state’s regulations. Whichever option you choose, you will always have to take into consideration your cash flow. With that said, you can certainly have a successful payroll schedule if you are fully aware of cash that is coming in and cash that must be paid out. Your cash flow is critical to a successful payroll schedule.
How To Choose
Another simple but important factor is whether your employees are paid hourly or salary. If employees are primarily paid hourly, it can be quite easy to calculate regular hours and overtime hours making it practical to set in place a weekly or bi-weekly payroll schedule. If the bulk of your employees are salaried employees, then it would probably be wiser to use a semi-monthly schedule. You will need to take into consideration processing times and costs when making your payroll decision. Whatever choice you make, be sure you are adhering to the guidelines and regulations within your specific state.
Choosing the ideal payroll schedule pretty much comes down to the business owner’s personal preference. Determining what schedule suits your company best as well as your employees can be somewhat tricky, but will eventually be a decision you will make that serves everyone well.
A Perfect Solution
Here at Tax Alternatives, our team of highly skilled professionals are on hand to take care of all your payroll needs. Outsourced payroll services can actually free up valuable time you need to focus on the very core and foundation of your business. Our dedicated team stands ready to provide you with all the accuracy, compliance and timeliness you need to ensure that not only your payroll needs are met but state regulations are met as well. From calculating your employee work hours, and payroll processing, to tax filings and direct deposits are team handles it all.
When you put your trust into the hands of our dedicated payroll experts not only are your costs lowered but your risks are reduced. Here at Tax Alternatives, we take tremendous pride in meeting the individual needs of all our valued clients with only the highest quality services this side of the state. For more information on choosing the ideal payroll schedule, the many services we provide or the customized packages we offer our many clients, be sure to give a shout out to one of our team members today. We look forward to serving you and to helping you grow your small business year after year!