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HMMMM

Comment a comment by Anonymous, published on 12 March 2009
Navigate to the top level to view all replies to the article Paid Twice a Month vs Every Two Weeks
a lone nerd has left 1 comment below

my work just switched to the every other week method from the twice a month..

is it because it’s easier to fire people that way?

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RE: HMMMM by scottb :: NR7

Probably not. It’s almost always because it works better for their accounting.

Payroll tends to be a big chunk of money. Figure your pre-tax pay times the number of employees in the company, and adjust it for whether you’re near the bottom or top of the hierarchy, and it’s usually a pretty big number.

When a company is paying twice monthly, they’re ultimately accounting for payroll on an monthly basis. Each pay period accrues the liability of one half of the full monthly payroll, and subdividing it into smaller amounts than that creates accounting complications. If they’re paying every other week, it’s easy to subdivide it all the way down to an hourly basis — even though “exempt” employees aren’t paid on an hourly basis, it simplifies the accounting.

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