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Biweekly vs. Weekly Payroll
There are several pros and cons to weigh when choosing a pay schedule that’s suitable for your business. Obviously, employers’ views are going to differ from their employees’, so weighing the benefits and disadvantages – from both points of view – is a wise process to undertake.
The most common payroll schedules are weekly and bi-weekly. From an employer’s point-of-view, there are several factors to consider if you’re trying to decide on a weekly or biweekly pay schedule.
WEEKLY PAYROLL – PROS
- Weekly payrolls tend to be more organized, and easier to process. There’s usually no confusion as to when your payroll is going to be completed, or when timecards need to be turned in. In turn, your payroll processing should be consistent and easy to manage.
- Weekly pay periods tend to work better for hourly employees. Employees who are paid hourly are more inclined to have inconsistent work schedules, including overtime. Their hours can vary week by week, so with a weekly payroll, calculating overtime wages should be more accurate and easier. And, who doesn’t like a little money in their account each week?
WEEKLY PAYROLL – CONS
- Since weekly payrolls have to meet a deadline each week, it’s crucial that the employees’ timesheets are approved and payrolls finalized and processed by a specific time limit. A lot goes into processing a payroll. There are many other factors that play a role in the processor’s workload, such as wage garnishments, pay raises/decreases, sick pay, PTO, taxes, etc., so the weekly schedule has a lot of moving parts.
- Weekly payrolls can be more expensive to maintain. There are weekly labor costs to complete the time card, approve the time card, and run the payroll – each week.
BI-WEEKLY PAYROLL – PROS
- Processing a bi-weekly payroll tends to be more cost-efficient. The overall time spent on completing timecards, approving them, and processing payroll decreases. And, because you’re running less payrolls, there are less chances for errors.
BIWEEKLY PAYROLL – CONS
- Keeping employees satisfied with their employment factors is important to the success of your business. If you were to change to a bi-weekly payroll, there are many risks to the employee that should be considered, including their overall financial wellbeing.
So how do you reap the benefits and avoid the risks of your pay schedule? Work with an experienced payroll processor like The Employer Group! We take the time to understand your business objectives, organizational culture and employee needs before providing payroll solutions for you. Give us a call to find out how we’re different from the rest!