Dreaming of starting your own business? As the boss, there are a few critical elements to structure when first establishing your business. Setting up a proper pay structure for your employees is key but can also be challenging. The Maggi Tax team shares helpful options for creating an optimal pay frequency structure that works for both employees and employers.
Pay frequency simply refers to how often employees will receive their pay. As a business owner, it is essential to understand the needs of your employees when it comes to salaries and paychecks. Logically speaking, it’s important to note that the more frequently you pay employees, the more time and money it will cost you. When you consider those crucial elements that make up any small business owner, how will pay frequency come into play? Well, there are two options to review – a bi-weekly and weekly pay schedule.
The first option is the most common and generally, mutually beneficial for both employees and employers. By choosing to use a bi-weekly pay schedule, you maintain a set pay date every other week. This allows employers to plan for 26 pay periods, with a 3 pay period month occasionally. By and large, this pay frequency is the traditional choice for many businesses.
If you would like to start your business with a bang, you may decide to use a weekly pay schedule. This option is the most popular choice among employees and has proven to boost employee morale because of its weekly guarantee. A weekly pay date will provide 52 pay periods annually. However, as the business owner, a weekly pay schedule will require more time and money to process.
Don’t structure your successful business alone! For over 30 years, Maggi Tax has guided Tampa Bay businesses with all aspects of their financial well-being. Our goal is to implement customized financial plans that preserve and maximize your wealth management needs. Contact us here or call (727) 799-1701 to schedule your appointment today.
