Having Paystub Reflect True Information

BonnieS

Although I've been reading the Forum for awhile and have gotten lots of good info, this is my first post. I am the HR Manager at a software developing company with 60 employees half of whom telecommute.

We pay everyone bi-monthly on the 15th and 30th/31st. Exempts and non-exempts submit weekly timesheets for the purpose of client billing. The paystubs never reflect the correct PTO balance, correct hours and OT for non-exempts for that period and adjustments are made on the next payperiod.

We're in the process of adding ADP's EZ Labor Time & Attendance. Employees will be paid on the 30th/31st for work done from the 1-15th of each month and on the 15th of the following month for work done the second half of the previous month. I'm not sure this is legal in all states.

In an attempt to have the payroll reflect true times, PTO, etc., it has been suggested that the first payperiod under the new system, there would technically be no pay, which we of course would never withhold, so an "advance" would be given to everyone equal to what they normally receive. Then the following payperiod on the 30th/31st would have all the current info for the 1-15th.

How do others of you who pay bi-monthly handle your payroll? Do you actually pay on the 15th and 30/31st or a few days later? Do you always have a lag?

neveradull

[font size="1" color="#FF0000"]LAST EDITED ON 03-12-07 AT 12:02PM (CST)[/font][br][br]Welcome!
In answer to your question our pay periods end on the 15th and the last day of the month. Payday is three business days later which is a very short turn around. Our policy on errors, is our mistake will be corrected with a check the next business day. Your mistake you wait until next payday. I don't know of anyone that pays on the same day as the pay period ends, but then I live a sheltered life way out west. I would check your
state regulations for the legality of delaying paying employees for 15-16 days.

E Wart

Only 1st and 15th payroll I have ever had experience with was executives and commissioned sales. (I hated these too.) I have also done weekly and bi weekly. I would highly recommend bi weekly if ever have a choice. However, almost impossible to change from weekly to biweekly (as far as employees are concerned) but would certainly save $. However, should be easy to changed for 1st and 15th to bi weekly.
E Wart

Dutch2

When I first started here they paid on the 1st and 15th. This 'bout drove me and everyone else nuts trying to keep everything accurate and up to date. We had ee's complain to the Board of Directors that they never knew for sure how much they would be paid, etc... There were two times a year when we literally had to guess/estimate how much to pay our non-exmept ee's on their pay checks. Shortly afterwards I convinced the Board to change to every other week and we have not looked back. Now we work two weeks and are paid on the following Friday, 26 pay periods a year. Pay stubs always exactly reflect the correct pay and number of hours for the time period.

BonnieS

Thank you both for your replies. We used to pay every other Friday but they changed it a couple of years ago. Looks like we may need to rethink this especially from the legal point of view. Thanks again.

mbeam

We switched from a 3 day turnaround to bi-weekly over 11 years ago and wouldn't think of going back to how it was especially now that we have 3 times the amount of people we had then.