There are no doubts about the fact that QuickBooks has stood out to be an exceptional bookkeeping and accounting application, with its dynamic features applicable for all-sized businesses.
Speaking of QuickBooks, one of the vital functions that you are offered is Payroll. However, there is a constant debate between which payroll is better – Weekly, Bi-Weekly, or Monthly.
This article will help you to assess and compare Weekly, Bi-Weekly or Monthly payrolls and help you to make a better decision while working in QuickBooks.
Weekly Payroll Advantages & Disadvantages:
Weekly Payroll Advantages:
- It is undeniable that a major chunk of people enjoys and gets benefited from weekly payments and keeps a patterned flow of transactions. Especially, when it’s overtime the extra payments are made sooner rather than extending it till the end of the month where all of it has to get calculated.
- Apart from overtime, any kind of additional pay to the employee becomes much more convenient on weekly payroll since the pay period would be tally with the working week. Unlike, monthly payments where the calculations of the first and last week get a little dicey, weekly payroll are easier to comprehend along with the time cards which are payable.
Weekly Payroll Disadvantages:
- Under weekly payroll, one of the biggest disadvantages that cause to the employer is that of the time plus cost. Due to a weekly payroll system, the employer either has to get into doing the payrolls each time or assign a dedicated person for the same. This means, every time the payroll is made which is every week, the costs get higher for the employer to assign somebody to get the payrolls done.
- If the employer issues conventional paper cheques or cheque forms, then printing costs for every week is pretty likely to incur huge costs. Even if the payment is done via direct deposit, a small fee needs to be paid each time for the deposit as per the service being rendered. Adding all these additional costs every week is a significant disadvantage.
Bi-Weekly Payroll Advantages & Disadvantages:
Bi-Weekly Payroll Advantages:
- When compared to weekly payroll, definitely bi-weekly payroll frees up a significant amount of time from doing the payroll each time. That being said, bi-weekly payroll saves on money, time and in an overview, the tasks are executed as half as many annually.
- Since the payroll is created on a bi-weekly basis, there is a comparative amount of fewer errors. It gets itself adequately adjusted with working weeks and even the addition of overtime that happened over the past two weeks happens easily.
Bi-Weekly Payroll Disadvantages:
- Bi-weekly payroll is known for adjusting the monthly expenses with that of the pay periods which means that creates a kind of rift between the first and last paydays every month.
- For eg. the first paycheck which you would be receiving might be associated with the current month, however, the next paycheck would be that of the next month thereby creating a disturbing rift that hampers the payroll flow.
Monthly Payroll Advantages & Disadvantages:
Monthly Payroll Advantages:
- Monthly payroll’s biggest advantage is its super-easy way to handle and that the employer has to dedicate his or her’s time only once every month.
- Monthly payroll also offers its advantageous side in respect to its good adjustment with all kinds of payroll deductions (Canada Pension Plan contributions, taxes, Employment Insurance premiums).
Monthly Payroll Disadvantages:
- Monthly payroll mostly falls flat and is often disregarded by many countries in which frequent employee pay is more preferred. Especially, in adherence to the laws which even pays on an hourly basis is not applicable for choosing monthly payroll.
- Also, at times, it was a critical observation by many employers that their employees face a lot of struggles in sustaining the entire month with a monthly payment system. Also, paying off the bills and other expenses for the entire month with a one-time payment adds up to another employee’s redemption.
Honestly, it is best up to your very own judgement and based on an employer’s observation, that choosing amongst Weekly, Bi-Weekly, or Monthly payroll which one is the best. Mainly as per your business needs, and employee demands, and the state laws, that you need to choose wisely out of Weekly, Bi-Weekly, or Monthly payrolls.
Based on the region, and the most asked for payroll type, choose between Weekly, Bi-Weekly, or Monthly payroll.
If you still feel confused or might not make up your mind to choose between Weekly, Bi-Weekly or Monthly payroll, get in touch with the professionals who can help you further on this. Our dedicated QuickBooks Assistants are only a call away to help you with choosing amongst Weekly, Bi-Weekly, or Monthly payroll.
What are some of the Employee Benefits that I can add up while Setting up Payroll in QuickBooks?
Some of the employee benefits that you can add up while setting up payroll in QuickBooks are:
Insurance Benefits: Workman’s Comp
Paid Time Off: Sick Salary, Sick Hourly, Vacation Salary, Vacation Hourly
Retirement Benefits: 401(k), 403(b), Simple IRA, 457(b), 408(k)(6)SEP
Miscellaneous: Direct Deposit, Health Insurance
What are some of the Employee Compensations that I can add up while Setting up Payroll in QuickBooks?
Some of the employee compensations that you can add up while setting up payroll in QuickBooks are:
Overtime Rate: This is for overtime pay to be assigned for hourly employees
Salary: This is for employees who are entitled to receive a salary
Regular Pay: This is for employees who are hired on Hourly pay
Mileage Reimbursement: This is for employees to whom you wish to reimburse for miles driven
Bonus: This is for employees who are entitled to any sort of bonus payments