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Payroll Sales Pro Issue #22--Payroll Frequency
June 13, 2016

June 13, 2016

Monday Morning Pick Me Up

Inspiration and Information to start your week right

“Once you stop learning, you start dying.” -- Albert Einstein

Payroll Talking Points-Payroll Frequency

Payroll Frequency (how often employees are paid—weekly, bi-weekly, semi-monthly, or monthly) seems a pretty straight and uncomplicated topic at first blush.

But when we put a Frequently Asked Questions section on our Best Business Payroll site, we were amazed by the number of questions (and strong opinions!) that arose concerning various Payroll Frequencies. For a while it seemed like every other question or comment was on that topic.

As you meet with prospective customers, the issue of Payroll Frequency will come up so you should be at least basically conversant on the options and why some options are better in certain situations than others. Most clients will sign up for payroll and keep their current payroll frequency, but others may contemplate a switch as they make the move.

Generally speaking, running payroll less frequently costs less since there is a fee for each payroll that is run. Thus bi-weekly and semi-monthly are popular options. However, in some states, weekly payroll is the law; employees must be paid every week, so considering another payroll frequency is a moot point. Check your state laws to ascertain whether this is the case.

Weekly payroll is the frequency of choice for employees since they like being paid more often, but since it costs more to run payroll weekly and takes the payroll personnel time each week to prepare the payroll data, employers are not as excited about this option. For this reason, bi-weekly or semi-monthly pay periods are preferred by employers where allowed by law.

When it comes to a choice between bi-weekly and semi-monthly, employees generally prefer bi-weekly, since it adds two extra pay periods per year, and is easier when it comes to personal budgeting since they get a paycheck every other week. Employees tend to be happier when they know when they are getting paid. Semi-monthly can create confusion when the 15th or last day of the month falls on a weekend.

Semi-monthly payrolls, however, have a couple of advantages. The Finance and Accounting Departments like the fact that the end of the pay cycle coincides with the end of the month, and naturally has a month end date that accommodates year-end processing. This results in no carry overs like bi-weekly does. You have simpler wage increase start dates, benefit eligibility dates, leave accruals, and the like. In addition, semi-monthly costs a company less, with 24 pay cycles vs. 26. Your salaried employees will probably be fine with the semi-monthly pay frequency.

One caveat with semi-monthly pay for hourly employees: when it comes to overtime pay, employees generally have an easier time "seeing" where their overtime pay is with two distinct work weeks. With semi-monthly, the overtime rules are sometimes confusing, and some of the OT in a given calendar week will fall in a different pay period than the employee expects. Thus a company with hourly workers may do better with bi-weekly pay.

Most monthly payrolls are what they call Executive payrolls or Confidential payrolls. These are the pay runs of a few highly compensated top officers of an organization separated from the pay run of the rest of the employees in the organization. Although any salaried employee can technically be paid monthly, most prefer to be paid more often; thus monthly payrolls are relatively rare.


All it takes to refer payroll is to obtain a payroll invoice from the client, then send it to us and we’ll take it from there. When the client signs up with payroll, you get paid a residual commission for the life of the client.

Remember, PayPros can typically save them 20-25% over what they are currently paying and they will get a dedicated customer service rep that really knows them and the ins and outs of their business.

Ask them for a current invoice, send it to us, and when it closes you get residual commission for the life of the client.

For more detailed payroll Talking Points tips and information, see Payroll Tips and Techniques


Think you’re ready to earn Residual Commission for the life of your clients as a Payroll Referral Rep? Contact us by calling (888) 693-4611 or filling out the form at Best Business Payroll--How to Make Residual Commission

We’ll be glad to answer any questions you may have and look forward to helping you become successful in any way we can.


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