Companies decide which payroll schedule to use, which may vary from state to state. In the US, there are four options that a company can choose from: they are weekly, bi-weekly, monthly, and bi-monthly, with every opportunity attracting individual benefits. Below is a guide into how companies should handle employee’s payroll operating systems and different schedules.



The recurring period in which employees work time is recorded and paid is known as a pay period. The initial task after setting up a payroll operating system is to determine how many times employees get their pay. You can classify employees according to their salaries and work hours. Payroll software in Dubai will do all payroll tasks without burdening the company.

How to handle Payroll Operating System in Employees Schedule

On a Weekly Payroll Schedule, employees get their paycheck every week. Workers have a guarantee to get 52 paychecks in one year. Employees who understand their pay hourly are often paid weekly, and sometimes in a week’s arrears. 

They record and turn in their timesheets by the end of a working week then the pay follows. Thus, an accountant or pay clerk has enough time to reconcile and calculate the employee’s compensation. 
Pros
  • Weekly calculations are manageable even with overtime which is easier with a payroll operating system
  • Misunderstandings are minimal since employees will not have problems understanding the brief weekly calculations.
  • Some employees survive from one paycheck to the next, so a weekly pay to them is favorable
  • Some states have made this a requirement for some occupations
Cons
  • Companies with payroll processing systems charge organizations to run their payroll tasks. 
  • The accountant has more work to calculate monthly payroll taxes, benefits, accruals among others
  • Small paychecks can be hard to manage for most employees
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Bi-Weekly Payroll Schedule: 

A date is set in the week for employees to get their paychecks. A bi-weekly pay period guarantees the employees 26 paychecks yearly. It can apply to both hourly employees as well as salaried employees.
Pros
  • Calculations are comfortable, especially weekly overtime. The first day of the workweek matches the first day of the pay period.
  • Regular overtime is a motivation to employees for biweekly paychecks
  • No misunderstandings on overtime calculations from employees since payroll operating system is accurate
Cons
  • More work for accountants to calculate monthly payroll taxes if a company has no active payroll operating systems
  • Paychecks come on different dates throughout the month, which can make budgeting difficult for employees to run their bills.
  • In a leap year, there is an additional pay period, and employees enjoy the excess pay.

Semi-Monthly Payroll Schedule

A date is set in the month when employees get their paycheck resulting in 24 paychecks yearly. It mostly applies to salaried employees who receive their pay semi-monthly.

Pros
  • Monthly salaried employees find this schedule convenient since they don’t work overtime, and there are no confusing calculations.
  • With a paycheck coming twice on specific dates, it is easy to schedule how to pay bills.

Cons
  • Part of the workweek is likely to fall in the previous week, and calculations might be hard to comprehend.
  • Managers are likely to get complaints from employees about incorrect overtime calculations, but it can be avoided by the use of payroll operating systems.

Monthly Payroll Schedule

Paychecks always come on a set date of the month with 12 paychecks a year. They are basically for salaried employees. The total gross pay in a year is calculated using the number of yearly paychecks.

Pros
  • The company saves finances that are spent on the frequent running of a payroll operating system
  • No misunderstandings as the payment matches the monthly payroll operating system in taxes and benefits.

Cons
  • Most states do not allow a monthly payment. Thus, it is not commonly in use.
  • Lower wage workers will have difficulties when trying to budget their paycheck.

Automatic Payroll Systems 

The process of running a payroll is expensive and time-consuming. Online payroll processing systems are efficient, and it gives a company a unified HR and payroll system. The company will save time, and the company will be more organized with payroll records. Incorporate a payroll processing system in your company, unburden the accountant, save money and time.

Employees Overtime

Most employees have some employees who are eligible for overtime, especially the hourly workers. A company needs to track and calculate the overtime pay accurately. It is shared with some employers to include overtime in the next pay period to sum it up.

A paycheck can delay if the last working day is a Friday, the paycheck will likely come in the coming week to allow the account to do calculations. Avoid misunderstandings and complaints from employees by ensuring the payroll operating system delivers accurately. 

It is necessary to pay overtime earned in the appropriate pay period. This way, employees will not be insecure about developing fears that the company is stealing from them. 

How about Leap Years?

A leap year gives employees an extra pay period. Hence an extra paycheck called pay period leap year. It is good news to salaried employees who get their pay bi-weekly. Although it depends on the last pay period, the 27th pay period can fall in the year. Play safe and catch the issue early enough to divide the workers’ salary by 27 instead of 26. 

Conclusion

Some employers prefer to make payments less frequently to cut on payroll operating system costs. On the other hand, employees prefer to get their py often to make their budgeting easy. Most companies pay salaried employees monthly or semi-monthly. And hourly employees mostly receive their pay on a weekly or bi-weekly basis.