Creating a Payroll Lag
Our organization currently runs payroll in real time, with no lag for processing. So the pay period end date is also pay day. (I know what a nightmare for retro-active processing!) For a multitude of reasons, the organization is now looking at creating a 1 week lag for payroll processing. We are concerned about employee's ability to absorb this, especially in the current economic situation. We have floated several ideas to ease the burden on employees during this adjustment: loaning the money with a repayment schedule over several months, holding the money as an account receivable and collecting it upon termination... Any other suggestions would be welcome!