How often do you pay your guys?
We use a payroll service and get bi-weekly checks. This makes it easier for the record keeping and once you’re in the system it really doesn’t matter what the lag is.
The problem we’ve come across is new employees. If carpenter Joe begins on Monday of the first week of the pay period, he must wait for the pay period to end plus a week for the checks to come, so 18 calendar days.
I wish there was an easy way to float the employee some cash but that seems problematic for two reasons.
1- You now have a few extra checks, outside of your nice tidy payroll ledger to account for and;
2- If the employee needs money that badly how long will it take to pay you back? Obviously this is the bigger reason.
Is our only alternative to go to weekly pay periods? That would still create a lag of 11 days.
Who’s got a great solution?
Jon Blakemore
Replies
Enter the electronic age.
Fax or e-mail the info to the payroll service at end of week.
Your account debited.
Direct deposit initiated.
Money in bank for employee come Monday.
Fax and direct deposit are already a go. Of course this requires the employees to have a checking account (I can't believe how many don't).
Jon Blakemore
no problem. I use ADP payroll services. The payroll period is two weeks. A new hire can get a check directly from me end of first week - no more than he's earned, of course.
WhenI call in hours and earnings, I tell them number of hours, opay rate, dedections, etc, and that they need to deduct for a two hundered dollar ( or whatever) advance. That way the check stub shows his earning minus taxes, which are calced still on the earnings, minus the advance.
I log their reports in my books as payroll. I also log the advance as payroll. To me it is all still payroll. To them it is all recorded properly for the govment. To Joe Newguyski, it's all take home
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So do your employees go without pay the second week? With the way our pay periods are this could still mean that an employee has to wait a week for the second weeks payroll.Of course one week is better than two.
Jon Blakemore
No, they get paid for the work they do whether it is first or second week.but we all get to wait a few days. The hold back does not have to be a full week, BTW. ADP wants three days.We use direct deposit for most of it too. I've been thinking about that some. The ones who are not responsible enough to keep up a checking act are not responsible enough to be working for me, based on past experiences.
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Try using Paychex. If your employee starts on Monday and your workweek ends Wednesday, you call the hours in at the end of the day Wednesday and they will deliver the check Thursday morning. Or you can call Thursday and have the check Friday.
If your workweek ends Friday then the employee will have to wait until Monday.
I know you said that you do bi-weekly but I don't understand why it would take a week for a check. Paychex sends out the check the next day after you call in the hours.
jon... we use advantage payroll...
our week ends on Saturday... i fax the time in.
the checks are in my hand on Tuesday and Wednesday is Payday..
so the employee is only on the hook for 2 1/2 days....
lot's of people in the trades balk at letting their employer get too far out on them...
I'm a small employer, so this may be easier for me than you. I'm on a payroll service through my work comp company. Weekly.
When I hire, I ask if it is needed, and offer the employee an "advance" on earnings at the next payday. If the answer is yes (surprisingly, often it's no), I have the employee sign a witholding authorization for future payroll to repay the advance. I set this up according to the employee's needs - one chunk or four equal weeks, with a clause that the entire balance will be deducted from the next paycheck if ANY time is missed, or the employee quits or is fired. The total advance is ALWAYS less than what the employee's first net check would be, i.e. one full week if he starts on a Monday, 3/5 of a week if he starts on Wednesday, etc. This way, the employee has always worked enough time to cover the advance. This system works for me because payroll is deducted electronically from my one checking account, and my hand written check to the employee has nothing to do with my payroll costs except for accounting purposes. I enter it as an employee advance and the payroll service deducts it as a repayment AFTER taxes, etc.