How to Make a Timeline for Payroll
To pay employees according to federal wage and hour standards and comply with other payroll laws, it is imperative that the employer has a proper payroll system in place. Depending on the size of the payroll, the system may require using payroll software to process payroll, outsourcing the payroll to a payroll service provider, or processing the payroll manually. Regardless of the system used, a timeline is necessary to keep payroll processing on schedule and to reduce confusion.
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Instructions
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Create the timeline according to your pay frequency. For example, if the payroll is biweekly, it means that employees are paid for two weeks at a time and that they receive their paychecks every other week. You can use a spreadsheet program to devise the timeline or use a regular calendar.
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Write down the payroll tasks to be included in the pay period. For example, for a biweekly payroll the time-line should include day one through day fourteen. Day one through day nine can include processing preliminary data for the upcoming payroll. This can include time card calculations, new hire and termination processing, making address changes, entering pay raises in the system, calculating salaries and making deduction and tax withholding changes.
You can designate day 10 and day 11 to payroll processing. Day 11 can include post-processing tasks, such as record-keeping and forwarding the necessary payroll reports to the appropriate departments. If applicable, you can mail paychecks on Day 12 and Day 13 can be your payday. Keep in mind that the workweek usually starts on Sunday and ends on Saturday.
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Make a yearly calendar, if you have multiple payrolls, such as biweekly and semi-monthly. Use designated symbols to indicate the pay period start and end dates and the actual payday for each pay cycle. You also can indicate time card submission dates on the calendar.
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Print and disperse the calenders to managers supervisors and employees. This helps them to understand what time frame they are being paid for and when to expect payment.
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Tips & Warnings
Always remember that the timeline should be made according to with the pay frequency. For example, since biweekly and semi-monthly payrolls are processed differently and are paid on different dates, you'll need separate timelines for each. Additionally, the details of the timeline depends on your payroll processing tasks.
You can also make a timeline for payroll tax compliance, if your department handles such matters. For example, you can make a yearly calendar that includes payroll tax filings and W-2 processing due dates. Consult the Internal Revenue Service's Circular E for your tax filing due dates.
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- Photo Credit old calendar image by Allyson Ricketts from Fotolia.com
