There are a number of considerations to take into account when deciding on your payroll schedule, in this months blog post we have considered some of the most important issues for your business.
Not all organisations pay their staff monthly, some due to nature of their work pay weekly, quarterly or on an ad hoc basis. There is no inherent problem with running multiple payroll schedules but it will it may increase the complexity of your payroll operations (which will also increase the cost due to the additional work load).
Payroll Schedule – Types of Employment
Setting your payroll schedule depends largely on the type of business you run and the type of employment you offer. For instance if you largely employ staff by the hour or on an ad-hoc basis then weekly payroll is probably going to suit them best. Alternatively if your business employs staff on a long term basis then they will expect to be paid on a monthly basis.
It is best to find a balance that works for your cash flow and pays your staff on a frequency that suits them. However if your customers pay their invoices monthly you may find that the only option is to pay your staff monthly, in this situation we would recommend speaking with your staff and explaining to them reason behind the decision.
The intention behind the introduction of Universal Credit was to make it easier for claimants to adjust to being paid monthly in the world of work. Consequently if a considerable number of you employees receive benefits your payroll schedule should reflect this. You can of course continue to pay them weekly of bi-weekly this is at your discretion.
How Paybureau Can Help
We offer the complete payroll service for your business. All you have to do is fill out 1 form per employee and then let us know of any changes. We take care fo the rest.
Get in touch using our contact page or give us a call on 01242 573 321 for a free payroll consultation.