Pay Checks--Weekly vs.BiWeekly

Discussion in 'Business Operations' started by oOTurfmanoO, Apr 22, 2011.

  1. oOTurfmanoO

    oOTurfmanoO LawnSite Member
    Posts: 245

    For the past 5 years, we have been on a weekly pay period.The work week ends Thursday evenings and checks are issued Friday for that week. We are in the process of switching payroll processing payroll companies forboth convenience and $$ purposes. In doing so, we learned it is less expensive to switch to bi-weekly pay check vs. weekly in terms of the amount that we would be charged.

    The part I need help with is the decrease of pay or overtime opportunity.

    Follow me with this---> On a weeky (40 hour) pay period, if you work 50 hours you earn your hourly rate for 40 hours plus overtime rate for the remaining 10. Good money depending on yur hourly rate right!

    Now switch to a bi-weekly (80 hour) pay period.You get rained out a day or two plus forced to quit early due to rain. You end up finishing the pay period with 60 hours (no overtime) and obviously not you full 80 hours. You just earned less workin these 60 hours then you did the 50 hours with the weekly pay period.


    I need suggestions on how to handle this. Unless I'm missing something, there is a substantial decrease in the dollar amount of a pay check right?

    Ok, this would never be an issue an issue for a new hire, they don't know any different. How do you (or can you) handle this with your main team member that has been wth you for 4-5 years?

    "Hey, your doing a great job, you have more responsibilities this year. We are switching to a bi-weekly pay check and as a result you'll be receiving smaller checks."

    So what if I increased his hourly rate so it pans out so te dollar amount is the same if it was 40 hours plus 10 overtime or 50 of 80 hours worked?

    I need strong feedback on this.
     
  2. RedSox4Life

    RedSox4Life LawnSite Bronze Member
    from Mass
    Posts: 1,426

    I'm pretty sure anything over 40 hours in a week is overtime... regardless if issueing checks weekly or bi-weekly.
    Ask your payroll guy, thats what he's for.
     
  3. zturncutter

    zturncutter LawnSite Bronze Member
    Posts: 1,308

    Red Sox is correct.
     
  4. ffemt1271

    ffemt1271 LawnSite Bronze Member
    Posts: 1,285

    anything over 40 hours in a week is overtime, you cannot "average" over the 2 weeks
     
  5. oOTurfmanoO

    oOTurfmanoO LawnSite Member
    Posts: 245

    Ok, so what I'm gathering from this is although the checks are issued bi-weekly, there are still start and end days within the pay period?

    For example, it we do a mulch job at a college campus for 3 days back-to-back totaling 36 hours in these 3 days then work an additional 2 days at 10 hours a day, we just worked 56 hours in the 1st week.
    (this given week went from Monday and hours concluded the following Sunday evening.)

    Next, we work from that Monday morning through Saturday and total 47 hours.

    The check for that period is Regular Pay for 80 hours and OT for 23 hours?

    Is this correct?

    Thanks for the input thus far!
     
  6. knox gsl

    knox gsl LawnSite Platinum Member
    Posts: 4,851

    Yes this is how it's done. The only downfall for the employee should be making his money last 2 weeks without wanting you to advance cash all the time.
     
  7. seabee24

    seabee24 LawnSite Senior Member
    Posts: 619

    In that example. You would have 40 hours of regular pay,16 of o/t. Plus 40 hours regular pay and 7 hours o/t. Equals. 80 hours regular plus 23 o/t. Which doesn't save you money.

    Things you can do to save o/t.

    1. This works for me, may not for you.....we do not, do not ever schdual work for Saturdays. Saturday is a make up for rain days, or projects that ran behind. As a result, if we are working on a Saturday, it more than likely means the whole crew is already on over time. So I now start my pay week on Saturday. And as a result, we are not on over time. Now this can just make the next week worst, ....but what I do is, "lighten up the schdual" for the following week. So maybe I will give them Monday off or something to keep hours low.

    2. hire more people, get the job done faster.

    3. Put people on salary that qualify for it.

    4. Let the salary people or your lowest wage person come in early and fuel mowers, load things

    5. Some people work for beer money

    6. If you do a lot of projects, have them meet you at the job, so you don't have to pay travel. Doesn't work with mowing crews, but it does with construction.

    7. Stop taking on so much work....spread it out. Eitther A. Your so busy all season long that you need another crew, or B your really only busy in the spring time, and you just need to learn how to spread the jobs out. Example...I tell half the customers, wait on mulch until may, this way the April showers wil not wash it away, and we can mulch after we trim your bushes....well late may turns to June.

    Or patio and retianing wall, I explain that having a dry soils ground is a big benefit when it comes to the life of your patio. I tell them the job will be better if completed in the middle of summer.


    Just a few examples

    Bottom line,

    Fuels is up, thanks to unemployed we have tins of new competition who's prices are down. If you are priced compedativly that means your margins are tight, adding over time, I bet your making very little on those jobs. I'm not in business to make very little
    Posted via Mobile Device
     
  8. seabee24

    seabee24 LawnSite Senior Member
    Posts: 619

    Tell them that you don't write the checks, and that you pay a service like apt or intuit or an accountant, and that they only run the checks twice per month, and it cost $75 bucks each time for them to run the batch. If they want a pay advance it's going to cost them$75 bucks.....your time is worth something to, and that's just more paperwork for you.

    They will vary quickly learn to manage their own money...heck i have to manage mine...why can they do the same
    Posted via Mobile Device
     
  9. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 874

    ditto on the previous reply - overtime is based on anything over 40 within a 7 consecutive day period.
     
  10. oOTurfmanoO

    oOTurfmanoO LawnSite Member
    Posts: 245


    This is great feedback, thx!
    When I mention saving $$ on payroll, I am referring to the dollar amount I am charged by our payroll processing company. For example-->weekly checks cost $45.00 where bi-weekly cost $35.00, a savings of $10.00.

    We are similar to your company with the Saturday work. We do it if it is necessary, maybe rained out during the week or fell behind on something. My intentions are not to work Saturdays.

    What would you consider "qualifying" for salary? Right now I would only b able to pay salary during the working season, they collect during the winter months. Any ideas?

    I currently have two employees, my main man and his brother. His brother has worke for us in the past part-time and has returned for an available full-time position this year. But.. he dosen't drive, he rides in with his brother (the main guy). So if we knock off early or something, I can't send somone home and have the other prep for the next day or similiar. (Did you follow that?)

    I not in a position where I can bring on a 2nd crew but I also ned to brig in enough work to keep us busy an profitable (I'm in a tough spot)

    We are not a design/build company, we do maintenance and lawn apps. I see your point!

    I obviously hate paying OT but anyone and everyone loves earning it. How do you avoid it?

    Good stuff, thx!
     

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