A pay schedule consists of a pay date and a work period. The pay date is the day money becomes available to employees, either because they receive checks or because the money has been deposited into their bank accounts. The work period is the time during which the work is performed. You can set up more than one pay schedule if employees are paid on different days or for different work periods.
Here are a few examples:
- Employees are paid every Friday
- Employees are paid every Friday (the pay date) for work performed the previous Saturday to Friday (the work period). When you set up the pay schedule, choose Every Week for the pay period and appropriate dates for the next pay date and work period.
- Employees are paid the fifteenth of the month for the work performed from the 1st through the 15th and on the last day of the month for work performed from the 16th through the end of the month. When you set up the pay schedule, choose Twice a Month for the pay period. Enter appropriate dates for the first payroll date ands end of the work period. You can specify that the work period ends a number of days before the payday.
- Employees are paid every week by direct deposit with the next payroll on Friday, November 21 for work that was performed through November 14. By paying a week in arrears, you avoid creating checks before the work has been performed and you allow time for direct deposits to be processed by the bank. You can create direct deposits by 5 pm PT on Wednesday to allow two banking days for processing.