Choosing the Best Payroll Frequency for Your Ormond Beach Business

As a business owner, you need to run payroll regularly to ensure that you are paying your employees their earned wages. This article will show you what payroll frequency is and how to determine what the best option may be for your Ormond Beach business.

What is Payroll Frequency?

The basics behind payroll frequency are the amount of time between when an employee is paid. It will determine when they receive their wages and how often. There are 4 different types of payroll frequency that you can use in your business, which include:

• weekly
• bi-weekly
• semimonthly
• monthly

 

Let’s take this a step further and break down each frequency to show its pros and cons. The other considerations you must be aware of when choosing the perfect payment frequency for your business.

Weekly

Did you know that this type of pay frequency is the second most common form? When you choose to pay your employees weekly, they will receive their paycheck at the end of every week, typically on a Friday. Since the paychecks are more frequent, they generally are less money. However, many employees enjoy receiving a weekly paycheck to better handle their money and pay for bills at the end of each week.

Bi-weekly

With this form of payment, an employee will receive their paycheck every other week. For them, this means that there will be more money but less frequent. Bi-weekly payments are the most common payroll frequency. For many people who fear monthly paychecks, this can be a great middle-ground between weekly and monthly.

Semimonthly

This frequency can be confusing in comparison to bi-weekly payroll. However, the most significant difference is that instead of receiving a paycheck every other week, your employee will only receive a paycheck 2 weeks out of the month. Your employee will only have 24 total paychecks instead of 26 in the entire year compared to bi-weekly.

Monthly

Last but not least, we have monthly. For most people, being paid monthly can be challenging; the main reason being is because of the long periods without a paycheck. As an employee, it’s essential to know how to properly handle these large paychecks to ensure you don’t spend it all in one place. Because of these reasons, it is the least common pay frequency used in most businesses.

Other Considerations

Now that we have discussed the 4 different payroll frequencies, it’s also important to note that there are a few other factors that should come into determining which one you choose, such as:

• legal requirements
• the size of your business
• employee classification
• payroll cost

 

Does payroll seem like an impossible task to manage while being a business owner too? Not to worry, contact our professionals here at Vision HR. Our payroll service will help you focus more on running your Ormond Beach business.