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Old 03-04-2007, 09:28 PM
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Pay period changes

I need to make our employees a week behind. we have always paid up every week. for many reasons I am going to do this even if it means turning over all three employees.

Any ideas on implementing this without losing everyone. currently everyone is paid on Friday for Monday-Friday of that week. they get checks when we finish.

I am going to change to get the checks from last week on Friday morning. I will provide arrangements to cash or deposit checks at lunch Friday.

I need a fresh outlook on this guys.
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Old 03-05-2007, 07:31 AM
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We've always had a week delay in pay. We have a payroll service. Basically, I call in the Monday after the week worked with the hours. The checks are either deposited directly the employees account (PREFERRED!) or handed directly to employees on Friday.

I strongly encourage guys to have the checks deposited directly into their accounts. It saves them time and I don't have them trying to sneek off the jobsite to cash their checks. If I find that they do that, I start leaving their checks in their time slots at the end of Friday. Think about it, in your case you might have 3 guys wasting 1/2 hour each Friday running around to find a bank and them waiting in line. And probably add 15-20 minutes to go buy lunch and then go back to the site to eat. Add that up over 35 weeks and you're paying a minimum of 50 hours a year (plus fuel) so they can have cash in their pocket on Friday when they punch out. I say have the checks deposited directly into their checking accounts Friday morning or they can pick them up at the end of the day and cash them on their own time Friday evening or Saturday.

Last edited by johnkeegan : 03-05-2007 at 07:41 AM.
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Old 03-05-2007, 08:26 AM
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I would first sit down and have a talk with all of them at the same time. Tell them that as the company grows you can not possibly get all of payroll done for that same week at the end of the day Friday. I would have some examples of why you need to do it, not that you as a owner have to explain your decision, it just might make it easier to swallow if you give some examples.

Give them a notice of time to prepare, instead of just saying on Monday that they won't be paid at the end of the week.

When we changed our pay period and pay date's, we did it when all of the guys got back from layoff and made a fresh start in the spring.

Last, be willing to give some advances the first pay period if the guys run a little short. Make sure that they realize that it is a special circumstance, so they do not try and take advantage of your generosity down the road.

Also, make sure that you have it spelled out in your employee handbook. If you don't have one, create one! It is very important that you have your company policy on paper and the guys sign off that they read and understand the content. It is against the law to change employees payment terms without written policy, you are in essence changing there employment contract with you.

JMO
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Old 03-06-2007, 11:48 AM
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I've done it..

Went from end the current week. To Firday the following week
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Old 03-06-2007, 04:23 PM
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I took it one more step further this year. As of January 1st we pay every two weeks on the Friday following the end of the last week.

Definitely improves cash flow and reduces the time spent writing checks on a weekly basis.

There was a little moaning....expected.

Next step will be direct deposit and for those without accounts we will mail them out. I'm tired of the one's that ask over and over and over again if they can have their check early, even though they've never been given out early. Always at the end of the day on Friday after all work for that day is completed.

Last edited by Nebraska : 03-06-2007 at 04:27 PM.
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Old 03-06-2007, 04:50 PM
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I think the main thing about pay checks... and it dosn't really matter whether it is every week or every two weeks or with a week hold back ....is that they are regular, at the same time every time, come *ell or high water. If you do this then there is now moaning or groaning. I think direct deposit is best. The guys know that every second Friday their money is in the bank first thing in the morning even if the boss is busy, or they are busy or what have you.
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Old 03-06-2007, 05:22 PM
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For all you guys using direct deposit, are you using a payroll service, direct through accounting program, or your own bank for the service. Which do you prefer and why?

We have been kicking this around for over a year now and I think I finnally am going to give in to the request of the employees.
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Old 03-06-2007, 08:52 PM
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Payroll service. It costs $35 per week for me and 4 employees. They do all the calculations, tax payments, retirement, direct deposits, etc. Well worth it.
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Old 03-08-2007, 03:10 PM
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We use a payroll service as well. They handle all of the direct deposit activity for us. They also make all of our tax deposits and all of that fun stuff. We use ADP who has partnered with Bank of America. Bank of America will give a free checking account to any of our employees who has direct deposit. A few of our employees have taken advantage of this. We pay about $116 every two weeks for payroll processing but that is for 30 employees. We also pay every other week with a week between the date of the ckeck and then end of the pay period.
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