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Employment Law/How to Implement a Payperiod Change


We are going to be adding a 4th location very soon.  With that said, we need to change our payroll cycle in which we do not have to process checks "right after" the pay period end.

Example: last pay period was 01-13 thru 01-28, paid out on Sat,
01-31-15.  That only gave my payroll processor about 1.25 days to process 150+ employees payroll data.  That is not enough time.

How can we cycle our pay period in which (from the example above) does not have to be processed right away and it jumps to the 15th of the new month?  As well as keeping our pay dates the same (15th and EOM)?

I want to change to this structure:
Example: 01/01 - 01/15 (we pay out at the end of the month 1/31)
Example: 01/16 - 01/31 (we pay out at on 02/15)

Example: 03/01 - 03/15 (we pay out at the end of month 03/31
Example: 03/16 - 03/31 (we pay out at on 04/15)

What would need to be the recommended temporary payroll periods in order to cycle through to the new way.

What would you recommend?

There is no easy way to do this. If you have all salaried employees it will be easier. This is a semi monthly pay period.  It is great for accounting it is a nightmare for payroll if you have hourly employees.

There is no easy way to do it. you have to pick a cut off point and let the employees know ahead of time this will happen give them at least 30 days notice. they will be short some pay in that week and it will be paid at the end of their time with the company.

We pay every two weeks which is bi weekly and it is much easier. We cut off one Friday and pay the next Friday. I held back a week pay when we switched from semi monthly.

Okay if your next pay period is March 30th than you will pay on March 30th and give them notice that time for the May 15th pay period will cut off on May 8th. They will be short 1 week of pay.

You can let them use PTO or vacation time for this time if you wish.

You will still have to figure the overtime on a weekly basis for any hourly employees. That means you will have to do spreadsheets from one semi monthly payroll to the next to figure in the overtime.  If time cuts off on Tuesday than you still have to figure overtime for that week on the next payroll.  

That means Joe's time cuts off on Tuesday of the pay period and he has worked 16 hours, on Wednesday he works 10 hours, on Thursday he works 8 hours and on Friday he works 9 hours. You have paid him for Monday and Tuesday on the 15th. Now on the 30th you pay him for Wed, Thur, and Friday and 3 hours overtime for that week. Payroll will need to keep track of those hours from one payroll to the next.

That is why we switched to bi weekly every other Friday. No split weeks for Overtime. time cuts off on Friday and we pay the next Friday. 26 payrolls instead of 24. Much easier for hourly employees.


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Shirley McAllister, CPP, PHR


I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).


30 years in Payroll and Human Resources

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PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

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