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Changing from a bi-weekly to a semi-monthly payroll
Benefits & Compensation
Changing from a bi-weekly to a semi-monthly payroll
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What are the biggest challenges when changing from a bi-weekly to a semi-monthly payroll? we are looking at doing this and I know that there will be challenges but I wanted to kow if anyone else had m
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Forums » Topic Forums » Benefits & Compensation » Changing from a bi-weekly to a semi-monthly payroll
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Changing from a bi-weekly to a semi-monthly payroll
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Changing from a bi-weekly to a semi-monthly payroll
posted at 11/10/2009 10:16 AM EST
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Posts: 1
First: 11/10/2009 Last: 11/10/2009 |
What are the biggest challenges when changing from a bi-weekly to a semi-monthly payroll? we are looking at doing this and I know that there will be challenges but I wanted to kow if anyone else had made this change & what it was like.
Thanks. |
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Changing from a bi-weekly to a semi-monthly payroll
posted at 11/10/2009 1:00 PM EST
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Posts: 464
First: 6/30/2004 Last: 11/22/2010 |
Being able to accurately track overtime for one.
Consider that when your pay period cuts off in the middle of the week for payroll check cutting purposes, then you must be able to track overtime between two different time sheets. It is a pain in the butt. |
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Changing from a bi-weekly to a semi-monthly payroll
posted at 11/11/2009 5:51 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Agreed -- if your workforce has a high concentration of hourly employees who are non-exempt, biweekly is better.
Administratively, while 24 pay periods sounds nicer and works better for monthly benefit deductions and budgeting, it also means that your payroll processing calendar is not always consistent. That is, you won't always process on Monday morning. And your paydays won't always be on a Friday. There might also be more times where your normal paydates fall on a weekend. Are you going to pay the day before or after? And there are some states that have wage laws that don't allow your pay to go beyond a certain time period after the last day of the pay period. Some require weekly, biweekly, etc. Personally I like biweekly better than semi-monthly. I like the consistency of it. All my managers know that payroll data is due every other Monday morning by 9 am. They know they get paid every other Friday, etc. |
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Changing from a bi-weekly to a semi-monthly payroll
posted at 11/18/2009 7:51 AM EST
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Posts: 1
First: 11/18/2009 Last: 11/18/2009 |
We did just the opposite several years ago.
Most employees liked 24 pay periods the best since it was more in line with the way bills come in. We paid based off of salary with docks for non-exempt and never had a problem calculating overtime. At that time we were running payroll in-house and from an HR generalist 1-person dept. viewpoint my time was better spent running 24 payrolls rather than 26. Now it is outsourced but I still feel I would be more productive running 24 than 26. |
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Changing from a bi-weekly to a semi-monthly payroll
posted at 11/20/2009 2:16 AM EST
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Posts: 1
First: 11/20/2009 Last: 11/20/2009 |
Your employees will probably approve. Since they will soon be receiving only 24 paychecks per year, the amount of each check will increase slightly. The down side - some employees might currently value the "bonus months" in which they receive three bi-weekly paychecks in one month. Since most people do their personal budgeting on a monthly basis, that extra check makes it feel like they are receiving extra money.
Administratively, the conversion will depend on whether you are using an outside provider or doing payroll in house. With an outside provider, conversion is easy. They should do all the work for you. In house, you might have some challenges depending on what system you are using. It is hard to know without more detail. Sandra Teague Advantage Employment Services, Inc. www.advemployment.com |
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