HR@Work is very pleased to announce a new DIY Excel tool: Annual Payroll Calendar Generator.
The new tool is available at no cost for clients and friends.
The Calendar Generator was designed for Companies that pay employees on a weekly or biweekly basis. The tool automatically generates pay period begin and end dates, deadlines for entering new hires and changes, deadlines for approving timesheets, and pay dates for the entire year based on basic and easy data you enter into the tool.
To access and download the tool, click here.
Why use a payroll calendar?
Businesses should have many tools in their toolbox to help their operations run more smoothly, but the most important ones are the instruments that help keep employees happy. Making sure they are paid on time is probably the simplest way to do this, but payroll can be a nightmare if a company is not organized. A payroll calendar can help to make sure you are organized and running like a well-oiled machine.
What is a payroll calendar?
It is a tool that shows the starting and ending dates of a pay period, along with pay dates. This helps employers know when to collect time sheets or give a deadline for when employees have to submit issues or problems with their time. Smart businesses should adopt a payroll calendar as soon as they open. Once it’s implemented, it’s much easier to keep it on track.
Payroll calendars are usually based on how often employees get paid, processing times for direct deposit, and holidays, especially banking ones. One companies payroll calendar might look very different from another businesses, but it is important to make it unique to the needs of your company.
Once it’s implemented, businesses should strive to follow the payroll calendar. Doing so ensures it will be a success, as will following a few tips. First, pick how often your employees will be paid, and be sure to follow all state laws. Watch out for the holidays. A banking holiday can throw your whole calendar off, so it’s important to monitor them to make sure you don’t have any kinks when a payday falls on a holiday. Set up the dates that are important in your calendar, such as deadlines for collecting timesheets, running payroll, and paydays.
Payroll Calendar Changes
It’s important to let employees know about any changes that come about from using the payroll calendar. Make sure you let them know when to submit timesheets and when they will get paid. Until you get used to your new deadlines, set reminders. Software can help with that and all other aspects of payroll, and works well in combination with a payroll calculator.
Probably the single most important aspect of the payroll calendar is deciding on a pay date. Knowing when they are going to be paid, and knowing they can depend on it, helps an employee budget, make decisions about purchases, and have less financial stress. It’s important to decide early on a pay period, the length of time between pay days, so you can know exactly how much information you will need collect.
What’s More Common? Weekly or Biweekly?
Most businesses pick a biweekly pay period with 36.5 percent paying their employees every two weeks. Weekly pay periods are also pretty common with 32.4 percent of businesses paying employees every week. Some businesses choose to pay semimonthly or monthly, but these are less popular choices. Individual businesses usually follow the same pay period once they choose the one they want to follow.
Research shows that the length of a pay period is dependent on the size of the business. Biweekly pay is lowest in businesses with a small amount of employees, with it being the most popular among larger companies. Weekly, semimonthly, and monthly pay periods decrease as companies get larger. Flexibility in paying workers is highest among smaller companies.
The next important issue is paid holidays. Workers react positively to having time off, and it’s a good way to reward employees for their time. The average number of paid holidays is 7.6 in the United States. This number is higher among professionals and a bit lower with blue collar and service workers.
The most common holidays in the United States are New Year’s Day, Easter, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas. Other holidays include President’s Day, Good Friday, Martin Luther King, Jr. Day, Veteran’s Day, Columbus Day, the Friday after Thanksgiving, and Christmas and New Year’s Eve. Most retail and healthcare workers have to work on these days.
No federal laws exist about paid holidays, and the Fair Labor Standards Act doesn’t require employees to pay for time not worked, which includes holidays. However, employees expect paid holidays, and those days are usually included in the employment offer letter and are listed in the employee handbook. Offering these days can definitely make employees happy, and employers can use them as a negotiating tactic when interviewing potential employees.