Payroll

Discussion in 'Business Operations' started by tthomass, Jan 2, 2008.

  1. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Posts: 3,497

    We have been running at a week to week payroll.......finish on Friday and you have the check for that week. No real issue, we're small and doesn't take much effort to put together a paycheck.

    I know most companies pay the following week. I see one benefit being a liability.....you have their check should some issue arise. Why is it that payroll is the following week? Is it what I just mentioned + to allow time to figure the check?

    Thanks.
     
  2. lawnMaster5000

    lawnMaster5000 LawnSite Senior Member
    Posts: 589

    I pay monthly b/c then I have to take less time to figure the checks. Starting in '08 I will be paying every two weeks, with checks coming Monday for the previous two weeks.

    This gives me time to calculate the check and not have to worry about being around when the guys get done Friday evening.
     
  3. FCPWLLC

    FCPWLLC LawnSite Senior Member
    Posts: 352

    Cash Flow. Also allows payments from consumers to clear bank etc. Also, if you have your payroll in an interest bearing account, you essentially are drawing interest year-round on employees money. :laugh:
    Gives you time to calculate hours and report to payroll processor and gives them time to print checks etc.
     
  4. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Posts: 3,497

    Good point on the interest.

    Nobody processes checks but I......I'm looking at 4 employees for 2008.
     
  5. bobcatnj

    bobcatnj LawnSite Senior Member
    Posts: 687

    we use a payroll company, paychex. they do everything with the taxes and all that. who has time to figure all that crap out and they are cheaper than my accountant. they do every 2 weeks, which works out good for the money flow
     
  6. AintNoFun

    AintNoFun LawnSite Bronze Member
    Posts: 1,807

     
  7. FCPWLLC

    FCPWLLC LawnSite Senior Member
    Posts: 352

     
  8. Foz

    Foz LawnSite Member
    Posts: 143

    Todd;

    If you have quickbooks up & running, purchase their payroll program, few hundred per year for the system that does all federal & state forms for you.

    I always ran my weeks from Mon to Sunday & paid on Tuesday at day's end. If we finished a project on a Friday, I had Mon & Tues bank business to clear customer's check & the paychecks written after close of bank business on Tues would not clear until Wed's business.
     

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