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The Best Way To Determine Your Business’s Pay Frequency

harding group pay frequency

Consider these factors when determining pay frequency.

Every business will have employees that will end up having a salary. In fact, setting up that pay structure is a key element of structuring any successful business. The reality is, you can’t pay people without first having a proper pay frequency structure in place. Ultimately, pay frequency simply refers to how often your employees are paid. Finding the right pay frequency structure can be a challenge. Here are some helpful tips to find the best type of pay frequency structure for your small business.

Essential Things To Consider

Before you begin figuring out the type of pay frequency, you need to understand and consider some key factors that will absolutely come into play. In fact, from a business owner’s perspective, paying your employees is an important part of the job. The reality is, the more you pay your employees, the more time and money it’ll likely cost you. However, you also have to consider the needs of your employees when it comes to their own salary and paychecks. Ultimately, your employees will typically want to get paid more frequently — relatively speaking.

Weekly Pay Scale

A weekly pay scale can really boost employee morale — because they end up having money in the bank every week. In fact, having a weekly pay schedule allows you to maintain a weekly pay date, provide 52 pay periods per year, and is traditionally the preferred pay scale among employees. However, with a weekly pay schedule, it will require a lot of time and money on the part of you as the business owner. Ultimately, figuring out what factors are more important to you as a business owner will help to dictate the best type of pay frequency to incorporate into your business structure.

A Bi-Weekly Pay Scale

With a bi-weekly pay schedule, you can maintain a pay date every other week — which can be mutually beneficial for both employers and employees. In fact, a bi-weekly pay scale is one of the more common types of structures among many employers. The reality is, with a bi-weekly pay scale you end up having 26 pay periods — with the occasional three pay period month. Ultimately, trying to please your employees and maintain elements of a successful business will usually lead employers to incorporate this type of pay structure into their business.

Trust the Professionals at the Harding Group

Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for consultations and strive for open communication with our clients.

Are you interested in business advising, tax preparation, bookkeeping and accounting, payroll services, training + support for QuickBooks, or retirement planning? We have the necessary expertise and years of proven results to help.

We gladly serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of tax time, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook, Twitter, YouTube, and LinkedIn.

This entry was posted on Monday, December 20th, 2021 at 3:27 pm. Both comments and pings are currently closed.

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