Q: Why should I pay hourly employees on a bi-weekly basis and not on a semi-monthly basis?
A: As a general rule, semi-monthly pay frequency (e.g., the 1st and 15th of each month) may work well for all exempt, salaried staff; however, bi-weekly pay frequency (e.g., every other Friday) for hourly employees is consistent and less confusing, mostly because overtime must be calculated each week (not pay period). A semi-monthly payroll crosses weeks and makes calculating overtime daunting. Pay laws vary per state. Contact Leslie Day, PPA Director of HR Consulting, at firstname.lastname@example.org for additional information.
Q: How long do I have to issue an employee their final check?
A: Final pay laws vary by state, but in general, the employee should receive their check the day of termination, but no later than the next regularly scheduled payday.
Q: Do I need to pay overtime for employees who work over 40 hours in a week?
A: Yes, you do for non-exempt employees. Federal law requires that they be paid one and one-half times the employees’ regular rate of pay after 40 hours worked (not paid) in a work week. Some state or municipalities require payment of one and one-half times the employees’ regular rate of pay if the employee works more than 8 hours in a day or works on a weekend or holiday, as an example. Exceptions also apply under special circumstances to police, firefighters and union shops, and to employees of hospitals and nursing homes, to name a few.
Q: What is the latest time I can submit my payroll?
A: Payrolls need to be submitted by 3:30 P.M. to guarantee delivery the next business day. Please remember funds need to be available one day prior to check date for direct depostis and tax pay.