EXAMPLES OF BILLS TO PAY HOW TO
EXAMPLES OF BILLS TO PAY SOFTWARE

Step 2: Next, you will need to calculate overtime hours. Step 1: You need to determine Susan’s gross pay. Here are the calculations you would need to make in order to properly calculate biweekly pay for Susan: For the last pay cycle, Susan worked a total of 81 hours.

EXAMPLES OF BILLS TO PAY HOW TO

If you’re not sure how to calculate biweekly payroll, check out our biweekly pay calculator, where we’ll provide you step-by-step instructions on how biweekly pay works.įor instance, Susan is an hourly worker who currently earns $25 per hour, and she regularly works 40 hours a week. This can affect the final cost of the service depending on the payroll cycle that you choose.

EXAMPLES OF BILLS TO PAY SOFTWARE

While many payroll software and services providers offer an unlimited number of payroll runs, there are some payroll service providers that charge for each payroll run. The choice is yours, but don’t forget to adjust it, otherwise you will be over-deducting from your employee paychecks, which will create additional work and a lot of unhappy employees. You have the choice to remove the deductions for the last payroll of the month during the three-payroll month, or calculate the deduction total based on 26 pay periods rather than 24. While deductions are fairly straightforward with semimonthly payroll, remember that biweekly payroll has two months with three payroll dates instead of two, making the deduction process a little more complicated. If you offer your employees benefits, you will also have to manage those benefits properly, including ensuring that deductions are processed properly each pay cycle. If they’re salaried, semimonthly may be the way to go. If the majority of your employees are paid hourly, it might be best to opt for biweekly. It’s much easier to pay hourly employees biweekly, which runs on a 40 hour work week than it is to pay them semimonthly, particularly if your employees frequently work overtime. One of the biggest things to consider when making the decision whether to pay employees biweekly versus semimonthly is the number of hourly employees you currently need to pay. Here are some specific things to take into consideration when making your decision as to which payroll cycle is best for your business. Weekends and holidays can affect pay dates.Inconsistent payroll days throughout the year.Harder to calculate overtime for hourly employees.Less time to process than weekly payroll.Consistent pay days throughout the year.You’ll also want to decide if you want to have more or less payroll cycles, which can affect the amount you pay for payroll services, if your payroll service charges you based on the number of payroll cycles you process throughout the year.īelow are a few pros and cons for both biweekly and semimonthly payroll. When making a decision about which payroll cycle is best for your business, you need to take several things into consideration when making your decision, including if you pay a lot of hourly employees, or if your employees are mostly salaried.

How to choose between biweekly and semimonthly pay for your business?īoth biweekly and semimonthly payroll cycles have numerous advantages and disadvantages. While you’ll be processing less payroll, which is always nice, your employees may not appreciate the disparity in pay days from month to month, not to mention the effect that holidays and weekends can have on pay days. Semimonthly payroll is great for businesses that mostly have salaried employees, with pay dates usually the 15th and the last day of the month, although some businesses opt for the 1st and the 15th of each month. Biweekly payroll offers consistent pay days every month, with the added bonus of two extra pay periods. A biweekly pay cycle means that your employees are paid every two weeks, always on the same day. There are 26 biweekly pay periods in a year, whereas there are 24 semimonthly pay periods in a year. Bureau of Labor Statistics, biweekly pay is the most popular payroll cycle in the U.S., with almost 37% of businesses opting to pay their employees biweekly.īiweekly is particularly good for businesses that have a lot of non-exempt employees that are paid hourly, as overtime calculations are much easier, and employees that are paid biweekly appreciate the consistency of being paid on the same day every pay period. Overview: What is biweekly pay?īiweekly pay, as explained above, means that you pay your employees once every two weeks on a specific day. Though many businesses opt to pay their employees on Friday, as an employer, you can choose the day that your employees will get paid. One of the most popular payroll cycles is biweekly pay, which means that you pay your employees every two weeks, with employees always paid on the same day. Part of learning how to do payroll is choosing a cycle for running payroll.

Examples of bills to pay