PDA

View Full Version : Payday...For those with employees.


TXLAWNBOY
04-10-2006, 11:17 PM
I am just curious to see what day of the week those of you with employees give out checks. And what are the reasons you pick this day of the week.

lawnman_scott
04-10-2006, 11:52 PM
Teusday at the end of the day. Picked it because its the middle of the week. If they drink alot they will be broke by the weekend and possibly wont be able to drink, and there is still 3 days till the weekend. Only down side, once an employee was phoning a creditor making payment arrangments and they didnt beleive that he got paid on teus, but that was kind of funny.

wacamaster
04-10-2006, 11:59 PM
You'd rather have them drink during the week and being hungover when they work for you?

TXLAWNBOY
04-11-2006, 12:04 AM
Tuesday is the day I pay also, partly for the same reason you stated Lawnman Scott. Also I used to pay on Fridays and it seemed like I had people call out on Mondays more. Paying on Tues. I seem to have less problems with call outs on Mon. and Wednesday is not a problem either. This also gives me the weekend to get hours together and have more time to look over the books and make out checks.

So far I haven't had problems with people showing up to work hungover, my employee handbook states loud and clear the polices about showing up to work hungover or smelling like alcohol.

exmark1
04-11-2006, 12:09 AM
I normally pay Monday at the end of the day. This way there is an incentive to not screw off and call it Monday because they know there is a pay check waiting for them at the end of the day.

JimLewis
04-11-2006, 12:09 AM
You guys pay every friggin' week?? Wow. I never had a job that paid me every week. Well, maybe I'm getting old.

Anyway, we've always paid twice a month, once on the 5th and again on the 20th.

TXLAWNBOY
04-11-2006, 12:16 AM
Hey Jim, I have thought about paying everyother week and will look into more, other than having to do payroll every week what are some of the advantages you like about paying every 2 weeks?

JimLewis
04-11-2006, 04:23 AM
First, understand I don't pay every other week. I only pay twice per month.There's a difference.

I think it would be a headache to do payroll every week. Just an annoyance to start with. And the more employees you have the more of a headache it becomes....gathering everyone's time cards, tracking down employees in the middle of the day to ask them, "Hey, what happened on the 12th? You didn't clock out that day.", double-checking time cards, calling and holding for the payroll company, etc. It's all just a headache. Maybe not so much for you guys who have only one or two employees. But when you got 15, it becomes a little more of a headache. And one I'd rather only go through only twice each month rather than 4 or 5 times in a month.

There are financial benefits to doing it twice a month too. My friend hired his second employee not to long ago and I referred him to our payroll company. He called me back and said, "Wow! That was more expensive than I thought it was going to be." I said, "Really? That's funny. I pay less than what you got quoted and I have a lot more employees." Turns out he pays weekly. BIG difference in payroll costs if you have a company doing payroll for you.

Then there's the cash-flow situation. Most business owners know cash flow is sometimes tight. Sometimes it's hard to get all the money in before payday. Most employers have had those days where they just BARELY got paid from the customers and got the checks in the bank RIGHT before payday. Paying less often helps you hedge this problem. Gives you more time to get paid on jobs, gives you more time to project, plan, etc. There have been lots of times when I didn't have much in the bank one week and then the next week everyone paid me and I went up to $20K. But that would have sucked to have a payday right on that low week. Paying employees only every 2 weeks gives you more flexibility and less pressure to ALWAYS have money in the bank.

The other part of the cash-flow situation is when customers pay ME. A lot of our maintenance customers pay us right near the end of the month. The second most common time maintenance pay us is on the 15th. So by receiving a lot of payments on the 15th, I am always more ready for a 20th payroll run. And then when we receive most of the other payments on the 30th, that helps me prepare for the payroll run on the 5th.

I really don't see a reason to pay every week. I've never had anyone complain about it or even bring it up. It seems to be pretty normal. Employees seem not to have any problem with it. So if it costs less, creates less headaches for me, and makes cash-flow run more smoothly, I don't see any reason why I'd do it any differently.

TXLAWNBOY
04-11-2006, 08:34 AM
Jim, thanks for your input, you answered pretty much every question I had about paying twice a month or every two weeks. I only have 3 employees right now but am slowly building my biz. and know I will change to doing a every 2 week payroll in the next year.

willretire@40
04-12-2006, 03:39 PM
I think that if you pay every week it would be easier to keep guys b.c most jobs pay every 2 weeks. Plus it helps their cash flow.

rodfather
04-12-2006, 04:20 PM
I think that if you pay every week it would be easier to keep guys b.c most jobs pay every 2 weeks. Plus it helps their cash flow.

I turn the previous week's hours into payroll on Monday. Pick the checks up on Tuesday, hand out Wednesday am.

6'7 330
04-12-2006, 04:38 PM
Once a week ,the guys get payed on Wednesday.Getting paid Once a week seems to make them happy, which in turn keeps them productive.

JimLewis
04-13-2006, 01:17 AM
Once a week ,the guys get payed on Wednesday.Getting paid Once a week seems to make them happy, which in turn keeps them productive.

Right.....makes sense. I guess that explains why my guys aren't productive. :rolleyes:

bullethead
04-13-2006, 09:51 AM
Pay them every two weeks (26) or 24 times a year, - forget the weekly pain. The sooner you start this, the better as you will have fewer employees bellyaching the first time you do it. They get used to it, they just whine the first time you do it.

Rex Mann
04-14-2006, 11:59 PM
We pay every week and on Tuesday. We use the exact time jobclock system. Mondays I use my palm to "suck" out the information from the
mobile time clock. Payroll done in the PM and checks given out on Tuesdays.

Peace,

Rex

http://PaverExperts.Com

YardPro
04-15-2006, 07:46 AM
we pay every two weeks on fridays.... We will be switching to monday's this year. I used to pay weekly on monday's before i merged with this business.

DadsLawnCareInc
05-10-2006, 07:30 AM
Payday is End of the day on Friday, However with direct deposit payday is thursday morning. Good Luck, T.M.

DadsLawnCareInc
05-10-2006, 07:34 AM
May I ask why pay on Mondays/Tuesdays? That seems odd to me, in Colorado most Companies pay on Thursday or Friday. Good luck, T.M.

TJLANDS
05-10-2006, 08:29 AM
I turn the previous week's hours into payroll on Monday. Pick the checks up on Tuesday, hand out Wednesday am.
Must be a Jersey thing, my system also.

drmiller100
05-15-2006, 11:14 PM
pay weekly on fridays.

AAELI
05-29-2006, 03:25 AM
It takes the same amount of time to process payroll each time. Time is money. We paid twice a month, 15th & 30th. With multiple federal ground maintenance contracts and 35 employees we kept things on an even keel by following federal wage & hour contract law. This proved to be the best way for us to manage payroll and supporting documentation for billing on the federal contracts.

Green-Pro
05-29-2006, 09:05 AM
This is our first year sending a crew out on their own with a schedule. last year we only had two employees and they primarily worked with me.
This year is a whole new experience and learning process, I like the idea of paying in the middle of the week. Right now we pay on Fridays, we did pay in the A.M. but we are switching that to the P.M. after last Friday when I saw our "crew" stopping to cash checks, buy donuts, etc. taking about one hour to complete the first lawn of the schedule (about a twenty minute job).
I was on another job in the same town and so I was able to "notice" this.
Needless to say there will be a "discussion" about Fridays performance or lack there of and some payroll changes implemented on Tuesday.

topsites
05-29-2006, 10:24 AM
I think that if you pay every week it would be easier to keep guys b.c most jobs pay every 2 weeks. Plus it helps their cash flow.

It may help their immediate cash flow but I feel bi-weekly would promote budgets which I am finding are the best thing to live by, in the long run budgets outperform hand in mouth. Also I am thinking, much like the guy who pays Tuesday so they don't get drunk on the weekend, perhaps bi-weekly gives a slight incentive not to go out and blow it, too. On that note, I further recommend twice a month (say the 15th and 30th or what not) so you don't get caught with that odd 3 pay day month, this is another benefit over weekly is you eliminate those months where there exists an extra pay day.

drmiller100
05-30-2006, 02:31 AM
i don't care if my employees can't budget.
i don't care if my employees get drunk on the weekends.

i care if my employees like their jobs, like their wages, and do the work and the customers are happy.

i've got one employee that can't make it an entire 2 weeks between paychecks. hard for him to leave me.