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Weekly versus BiWeekly Payroll
Benefits & Compensation
Weekly versus BiWeekly Payroll
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Our company currently runs a weekly and bi-weekly payroll (bi-weekly for executives and all others run weekly). We are contemplating switching everybody to bi-weekly in order to not only save money bu
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Forums » Topic Forums » Benefits & Compensation » Weekly versus BiWeekly Payroll
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Weekly versus BiWeekly Payroll
posted at 8/23/2007 6:28 AM EDT
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Posts: 1103
First: 3/16/2007 Last: 8/19/2011 |
At this point in the year, especially if it has never been done before, it is certainly prudent to coordinate the change of frequency with the tax year. However, the tax implications in this instance are meaningless and even RRuperts concerns can be easily addressed IF you have a decent payroll system and processes. The reason is the impact to individuals, the change in the actual process and ensuring that the majority of your employees truly understand the actual impact of the change and that the organization isn't screwing them.
In that kmes has never done this before and appears to have limited resources to support the change caution is well advised for them. In every instance I have done it the change took less than 60 days. That included communications, addressing issues of some categories of employees being short term adversely affected by the change, addressing accounting isssues, etc. Each one gets easier and easier as processes become refined and individual contributors become accustomed to what has to be done. The first one is always the hard one. |
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Weekly versus BiWeekly Payroll
posted at 8/23/2007 8:03 AM EDT
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Posts: 6
First: 8/23/2007 Last: 8/23/2007 |
I agree, the first pay period will be the most difficult, but give the employees plenty of time and everything should be fine. We just did this a year ago, at the employee group request-everything worked fine and it took us no time at all! We sent notification with the court deductions to advise that the next payment would be made on X date on each of the final two weekly payments, and then with the first bi-weekly.
In addition to what I've read from other posters, be sure to send out new direct deposit forms for your employees-if you have multiple deposits, it may be because your employees are putting money into certain accounts for specific bills. It's not going to change any tax considerations, but it will be a big help to your sole payroll person! |
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Weekly versus BiWeekly Payroll
posted at 6/16/2008 5:28 AM EDT
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Posts: 11
First: 1/17/2002 Last: 6/16/2008 |
I realize this subject was discussed quite some time ago but I now find myself in the same position of developing a proposal to move our hourly weekly employees to a biweekly payroll consistent with our salaried employees.
Are there proposals, checklists, communication pieces, employee advance policies that anyone might be able to share to help set some direction for me? |
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Weekly versus BiWeekly Payroll
posted at 6/16/2008 7:48 AM EDT
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Posts: 118
First: 2/28/2008 Last: 7/29/2011 |
We did it at the beginning of this year. We communicated it with a memo on all of our policy changes. We offered a small loan of $200 to bridge the gap. I think 3 out of 70 employees took it. They signed a promissory note and $100 came out of each of their next 2 checks.
one thing that changed for us, is the benefit deductions. They are now taken out 24 times a year, so any month that has 3 payrolls, it is not taken out of the 3rd check that month. |
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Weekly versus BiWeekly Payroll
posted at 11/21/2008 10:31 AM EST
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Posts: 1
First: 11/21/2008 Last: 11/21/2008 |
We will be moving to a bi-weekly payroll at the end of January 2009. I want to give my employees as much notice possible. Like pf, I we will also offer them a $200 loan to bridge the gap. This is the first time I do this and don't know how to communicate this effectively. Does anyone have a memo I can use that explains this change properly? Also, I know they need to sign a promissory note but don't know where to get one. |
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