What You Need to Know Before Changing Payroll Schedules

From pay periods and payment rules to effective communication, here’s what you need to know before changing payroll schedules.

what to do when changing payroll schedules

Changing payroll schedules is not trivial a trivial task; from pay periods to different types of employee schedules, there are many things to consider. Take a look at the what, when, and how of shifting payroll schedules for your business.

Pay Periods

If you’re changing from a semi-monthly payroll to a bi-weekly payroll, start by analyzing your pay periods from now until the end of the calendar year. Find out if any of those pay periods line up and choose the best point in time for changing the schedule.

Payment Rules

When implementing a new payroll schedule, it’s important to adhere to all payment rules. In some cases, employers may need to give an advance for a worker to catch up between the end of one pay period and the beginning of a new schedule.

Communication

Develop a communication plan for your employees. Be prepared to explain why the change is happening and what they can expect. Follow through on the plan with clear communication to make the transition as smooth as possible.

Changing a pay schedule isn’t easy, but there are many reasons to make a switch. For example, if you pay weekly and you’re considering changing the schedule to semi-monthly you’ll likely save time on labor costs and bank fees for ACH files.

Changing payroll schedules can also be beneficial to line up different pay groups in your organization. A bi-weekly paycheck can be great for employees because they can count on the predictability of payments every other week instead of a semi-monthly payroll which can be more difficult for employees to budget.  

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