What To Consider When Choosing A Payroll Schedule

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What To Consider When Choosing A Payroll Schedule
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• Choosing how often to pay your employees isnt as
  simple as picking a schedule randomly the
  payroll schedule you opt for can actually have a
  significant impact on your business and its cash
  flow, and careful consideration should be made
  before deciding.
• Firstly, lets look at what a payroll schedule is

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• What is a payroll schedule?
• When you set up a payroll schedule, youre
  essentially determining the length of your pay
  periods and the frequency at which your employees
  are paid. In turn, your choice also dictates how
  often administrative work must be carried out by
  your team (or by you if youre going it alone),
  and how impactful cash outflow will be on your
  businesses finances.

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• Its worth noting, however, that pay dates are
  not the same as pay schedules. For example, if
  your chosen payroll schedule ends on a Friday,
  this doesnt mean that its automatically payday.
  While as an employer, you do have some
  flexibility over what pay schedule you choose,
  its important to check for any relevant state
  laws, first. If youre outsourcing your payroll,
  seeking a providers help from the outset, can
  ensure that your final choice is in the best
  interests of the company and compliant with all
  relevant laws.
• To help you decide which payroll schedule would
  work best for your company, here are some
  important factors to consider

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• Cash flow
• To help prevent large withdrawals being made
  simultaneously from your business accounts (which
  can cause all manner of complications), you must
  try to coordinate your expenses, including
  payroll having a less frequent pay schedule may
  be the solution.
• Paid non-working hours
• Any non-working hours that an employee is paid
  for, such as vacations, paid time off (PTO), and
  sick leave involve the tracking of accruals and
  state-mandated minimums. Its also worth noting
  that all paid absences can have a negative impact
  on cash flow, since they typically generate less
  production, or less revenue.

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• Employee expectations
• Most employees - and likely business owners, too
  arrange their personal finances around their pay
  schedule, and if the schedule you choose isnt
  convenient for them, the financial stress it can
  put them under may have a negative impact on
  employee retention and satisfaction, not to
  mention employee performance and even hiring.
• State laws and regulations
• In some states, certain payroll schedules are not
  permitted, or may only be permitted under
  certain, specific circumstances.

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• Payday
• To help with cash flow, employers can separate
  payroll schedules from pay dates, but for bank
  holidays and the like, this may need to be
  adjusted.
• Benefits and deductions
• If your business chooses to deduct health
  insurance or 401(k)s out of every paycheck,
  youll need to make sure that employees are
  informed and that the impact on payroll has been
  fully assessed first, especially if you pay on a
  monthly basis.

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• Garnishments
• The prompt processing of wage garnishments such
  as lawsuits, student loans, child support and
  other employee debts, is important, and these
  usually impact every pay check.
• Impact on bookkeeping
• For your accountant or CPA to get to grips with
  your financial statements,such as profit and loss
  (or P and L), and better understand the impact
  your payment schedule has on it, youll need to
  make sure thatits coordinated with their
  efforts.

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• Payroll administration
• Having a less frequent pay schedule will help to
  reduce the amount of administrative work needing
  to be carried out on timekeeping records for
  payroll, and keep the cost of it down.
• If you want to create a streamlined payroll
  process and receive appropriate guidance on pay
  schedules, its best to work with an experienced
  payroll provider, who in turn, will help you
  limit the burden of administrative work needing
  to be fulfilled every week or month, and keep
  your employees content and performing their roles
  with vigour!

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• Apollo Payroll is dedicated to delivering expert
  advice, responsive service, and highly accurate
  payroll processing and reporting to ensure the
  success and growth of the business that we serve.
  Our services include comprehensive payroll
  services in Homestead and other cities in
  Miami-Dade County, employee background check and
  group health insurance in Miami Coral Gables