Virtual TimeClock Support Blog
Semi-Monthly Payroll Periods
It's easy to confuse payroll period end dates with pay days. We talk to a lot of time clock software users that are doing all kinds of gymnastics because their payroll period ends on the 15th and their payroll company needs a 2-day lead time in order for employees to get paid on time. So they collect timecards on the 13th and estimate time for the 14th and 15th. Plus they have to remember to go back and check the 14th and 15th the next payroll period to make sure they didn't overpay or underpay their employees. And heaven forbid that the end of a payroll period falls on a weekend!
There's a real simple solution for all this anxiety and guessing. It's what we do here at Redcort Software. We also use a semi-monthly payroll period, the first period runs from the 1st of the month to the 15th and the second period runs from the 16th to the end of the month (no matter what day that is). However, we get paid on the 5th and the 20th. This means the hours that get reported are the actual hours worked. The payroll company has enough time to process payroll and there's no fancy scheming with a calendar just to make sure everybody gets paid on time.