Setting Up a Pay Schedule
Pay Schedule Requirements for Employers
A pay schedule defines how often you compensate employees and/or contractors. Many states have rules regarding pay frequency, which may depend on your company size or industry. To review these requirements, visit the United States Department of Labor.
Understanding Your Company’s Pay Periods
A pay period is a recurring span of time for which employees are paid. It also determines how often payroll runs occur. Most companies use a single pay period for all staff, but some may have multiple periods—for example, bi-weekly payroll for certain employees and monthly payroll for owners or managers. It’s recommended to create a separate pay schedule for each distinct pay period.
Naming Your Schedule and Pay Frequency
A simple approach is to use the pay frequency as the schedule name, such as “Bi-Weekly.” If different teams have different pay cycles, names can reflect the team, e.g., “Management” or “Floor Techs.” Keep names simple to ensure anyone running payroll can quickly select the correct schedule.
Check Dates and Pay Periods
Your pay frequency will influence how you select dates. You’ll need to set the first check date, the start of the pay period, and the end date. Ensure the end date of one period is the day before the next period begins.
Choosing the Right Schedule for Your Company
It’s easy to get confused when tracking check dates and pay periods. Here’s a guide for common pay frequencies:
Weekly/Bi-Weekly
Select the first pay date and the corresponding start and end dates for that period.
Review Your Pay Periods and Key Dates
After entering this information, the Pay Periods section displays upcoming periods, check dates, and payroll deadlines. This helps ensure your schedule is accurate.
Semi-Monthly/Monthly
For semi-monthly schedules, choose the first check date and define the start and end dates for that period, then set the second period of the month. For the second period, pick a specific calendar day up to the 28th, or up to 5 days before the month’s end. This schedule applies to the current and all future months.
Always double-check your entries in the Pay Periods section to confirm your schedule is correct.
Need Help?
If you still have any questions, please don’t hesitate to reach out. Our team will be happy to provide answers and assist you in any way we can.