[Diane]

We pay semi monthly – paying the pay period in arrears. So we pay the pay period ending 10/31/23 on November 13th for example. Folks are expected to have their time in and reviewed by November 1st or 2nd. I can run the preprocess reports before the 13th to close October by the 10th.

I inherited this arrangement, and everyone understands that our state reimbursements rely on their compliance with this schedule.

I don’t come accross issues with errors, and I would correct the following pay period if there was.

Diane

[Nancy]

How easy it is to make the change depends on the staff. If you have a lot of low income hourly workers, it is difficult. Those people live paycheck to paycheck and they will view the change as losing an entire week of payu. No matter how you demonstrate that they will be making the same amount of money, you can’t deny that there will be a one-time delay in getting the next check. That delay will hurt some staff – they may have to pay a rent penalty because the rent was late. It may be another week’s interest on a pay day loan. If you are living pay-check to pay-check, you really can’t plan ahead and save up a week’s salary.

You may want to consider a one week loan with a four paycheck payback. Or if you have the resources, a one week bonus. Or let the employees cash out a week’s worth of vacation or sick leave.

[Wade_Rogers_Forum_Moderator]

Thanks everyone for replying and helping Kara navigate this question! I appreciate your pointing out the effect it can have on employees who may need lead time and help adjusting to the new schedule.

[kara]

Thanks everyone. I am very aware of the impact it would have on our low-wage hourly employees, which is why I am fighting so hard against it.

For those of you who are on a lag schedule, how do you deal with quarterly taxes?

We have so many things tied to the semi-monthly schedule, including worker’s comp wage reporting and retirement fund contributions. It just feels like an absolute nightmare to unwind and start over.