Payroll - Your thoughts

[SC Minnie]

I was paid monthly until about 10 years ago when the company that bought us paid biweekly. It took some getting used to but is fine. I too would pay all my bills as soon as I would get my monthy paycheck. When we moved to biweekly I put all my bills in a calendar so I knew which ones would pay out of which check. No biggie.

We still get paid biweekly and I really like the months we get 3 pays!

 

[HsvTeacher]

My DH and I both get paid on the last working day of the month. We're both salaried workers, so we get paid the same regardless of how many weeks are in the month. Our paychecks are also prorated so we get paid during the summer months when we're not working.

We actually like it. We pay all of our monthly bills on the first, and then we have a weekly budget that we follow.

 

[ilovediznee]

I get paid 26x per year. I have in the past been paid 24, but I like 26. I plan a spreadsheet for every month and those months when I get paid three times - usually December and July, I use those for Christmas and our Disney trip. I've just gotten used to it and I don't freak out because I know my Christmas and life insurance will be taken care of in December and then plan our Disney trip with the other.

One think I hadn't thought of that someone said is really true though. If I use those 2 extra for Christmas and our trip, my total pay really is lower. I'd get a bunch more per pay period if it was reduced from 26 to 24. Thanks for the insight!

Diane

 

[scrapquitler]

Would you accept a job that pays monthly?

Many companies (small operations for the most part) in our area have moved to a monthly payroll system. Our firm made the decision over ten years ago to pay our employees monthly. We disclose our payroll policy to all applicants.

We have not had any employee complaints and some believe that it is a positive in that it forces a strict budget. In ten years we have had one employee voluntarily leave the firm (for family reasons) and our staff has remained relatively stable.

From an employer's standpoint this system saves money in payroll expense, helps cash flow (we bill out monthly), and gives us some comfort that our staff members are responsible money managers. Our key employees deal with trust accounts containing client funds.

This morning I was discussing payroll with a government employee and it is her position that employees at her office would revolt if the entity moved to monthly payroll. She stated that there was some discussion that the entity wanted to move to 24 pay periods per year (two per month) rather than 26 (payroll every two weeks) and the blowback was significant. Employees felt that the two months per year when they received three payroll checks was like a bonus.

What are your thoughts?

Its the same total amount of money, just in less checks.
I think it would take some getting used to if you are accustomed to getting a check every week or every other week, but after the initial period, people should get used to budgeting and working out the schedule for paying their bills.

 

[NikitaZee]

Any time you make changes you're going to hear people grumble. As far as would I take a job that pays monthly? Sure, I'm settled in my life with savings to cover me until the first paycheck came in, after that it all equals out the same. When I was young and first started working it would have been an issue though. As I wouldn't have been able to buy groceries until the first check came in, so at that time in my life I would have picked the company at paid weekly vs monthly.
And as far as the PP comment of, if they complain they have the wrong attitude and should be lucky to have a job...... For several years corporations have been cutting everything to the bone and expecting the remaining workers to pick up the slack because "they're lucky to have a job". Seriously, that is getting old. Since many corporations are bringing in record profits during these difficult times I think the phrase should be changed to " they are lucky to have employees" who continually to give their all for longer hours, less pay, and less benefits.
If a company wants to change the payroll to help reduce costs, so they can stay competitive, great. If a company wants to change payroll to help reduce costs so the CEO can get a big get bonus - I'm not gonna get all warm and fuzzy about it.

I agree with all of this. I wouldn't like to be paid monthly. I'm actually surprised that so many who replied are okay with it. We work with a weekly paycheck now - if that were change to every other week that wouldn't be a problem.
I don't like the idea of a monthly paycheck forcing strict budgeting. Not everyone is comfy and set with savings in the bank - folks who live paycheck to paycheck certainly have less of a cushion for unexpected emergencies that pop up between monthly payroll deposits.

 

[dodukes]

I pay myself monthly. At first it was hard but now like many said, i like being able to pay everything right off the bat and then see what i have for the month. I hate the every two weeks thing, and im glad we dont do it here. My last job paid on the 15th and 30th at least with dates its easy to pay your bills. I would gladly take a job that paid monthly even if it meant struggling the first month.

 

[bumbershoot]

We were paid twice a month (OK I'm going to say "we" but it's my husband who gets paid...I just think of it as "we" and so does he), and we thought that was good.

And then he took a job where they paid monthly. It was SCARY to switch over. We were the paycheck to paycheck types, with NO savings whatsoever. The ONLY way we made it at the beginning of that job, without having to ask my generous brother for a bit of help, is because he got a signing bonus AND they were willing to give him the bonus earlier than they normally do. (I've since found out that this is something they do for others, if asked, because they know how hard it is to switch over for some people)

I will tell you, being paid monthly is GREAT!

There's no scrambling at the end of every two weeks, just waiting for the next paycheck. You have all your money right then and there. You *can* set your bills to all come out right at the beginning of the month, and then you don't have to do anything bill-related until the following month. There's no worrying about "did I miss this bill", because it's all just being done at once. (if you choose to set it up that way...we actually don't, because I haven't needed to, but I could if I wanted to)

For someone who was living paycheck to paycheck before, even before we started paying attention to DRamsey and started getting better about things, we found we had a hard time using all of the monthly paycheck. It's like having ALL that money all at once changed our spending habits just by being there. But hubby and I both have a bit of emotional spending that gets worse when we have *less*. So having more actually reigned us in a bit.


If we didn't have the signing bonus, if HR hadn't been willing to front it to us, and if I didn't have my brother in the background, I don't know what we would have done during the switchover, because it was scary even *having* the up-front bonus. But after that first month or two, it's been the absolute BEST.

One of the main reasons to have monthly payroll is to cut costs, however the benefits to the employee are not cut. I am not sure why it matters whether the CEO is going to get more money. In our firm the partners income is directly affected by expenses . . .we will see an increase in income for cost cutting like this. However, there is a delicate balance. We want happy, well paid employees because they are productive and in the long run increase our income.

I really agree with you.

I don't like the idea of a monthly paycheck forcing strict budgeting. Not everyone is comfy and set with savings in the bank - folks who live paycheck to paycheck certainly have less of a cushion for unexpected emergencies that pop up between monthly payroll deposits.

It's really only hard in the beginning. And then it's fabulous.

Now, if you think you would truly spend ALL of the money in the first two or three weeks, then it's different, but I will tell you, it wasn't like that for us, and we were pretty bad about it. Even when we were both working, we'd spend it all to zero; not on needed things, but "hey we have this money left, let's go away for the weekend". We didn't even have credit cards then, we just, for some reason, felt the compulsive need to get the account to zero, LOL. And when we went to monthly paychecks, it was like it was too much to spend like that, and we stopped to a big extent.

 

[design_mom]

Both my husband and I get paid twice a month, and I think I prefer that to monthly paychecks. However, I don't think it would make much difference in our day-to-day lives if things changed.

I do think it's interesting that a previous poster mentioned that she was able to contact companies and request a change in billing dates. I have never thought to do that. I get so frustrated because it seems like I sit down to take care of the bills and then we get another one in the mail. It would be great to take care of them all once (or twice) a month.

 

[Shyvioletisme]

Well, right now my husband is paid every 2 weeks and I'm paid the 15th and last day of the month. Overall I don't think I'd have an issue with moving to a monthly payment. I'd have to switch some bill payments around (as I have them staggered throughout the month right now) to coincide with the new pay date, but overall I don't see any issues with it. You get the same amount you'd be getting with any other payment system, just all at once. I think it might actually be easier in the long run.

 

[phorsenuf]

My husband took a new job back in September that pays monthly. I wasn't too thrilled about that part of it. But now, I have to say I love it! There is such a satisfaction of paying all your bills in one fell swoop and you're done for the month. I don't think I want t go back to getting paid weekly.

 

[suzannen]

I've been getting paid monthly for most of my career and I really like it. I get direct deposit towards the end of each month and then pay all of my bills in one sitting. I've also never heard any complaints from any of my co-workers through all of the years.

 

[mickeymedic]

Aside from the initial adjustment (if you were previously getting paid more frequently than once per month), I don't see why there would be a problem. It's the same amount of money being doled out - just all at once instead of in multiple payments.

I remember when the company I worked for changed from weekly to bi-weekly. Some of the employees were beside themselves. I actually prefer bi-weekly over weekly pay.

 

[Southernmiss]

DH and I have each been paid monthly for the last 13 years. It's really no big deal.

The only time I remember adjusting our budget was when I went from full time employment to part time and we set aside a "buffer" --a little savings cushion in our checking account to cover the unexpected.

I don't remember the transition from bi weekly to monthly to be a big issue. (But we are frugal/saver/money nerd type people anyway.)

It's easier I believe to only worry about the bills once a month.

 

[MrsPete]

My parents were teachers who only got paid 10 months out of the year. If they didn't know how to budget for the summer months we would've been very hungry for 2 months!

I'm a teacher, and I receive 10 paychecks a year. It's not a problem. I have a budget, and I never even think about it. I've been paid monthly most of my life.

For about two years I worked in a job that was paid weekly, and I hated it. Every week I'd get a piddly little check, which required a trip to the bank -- this was before direct deposit became "a thing". What a waste of time that was.

 

[TinkPirateMom]

I currently have 3 jobs that pay 3 different ways. One job I get paid on the 15th and the 30th of the month, Septembr-June. My second job pays their agents once a month if the agent has earned a comission for that month. At my third job I take home cash after each shift I work.

There are pros and cons to each pay schedule. However, if I had to choose I actually prefer the immediate gratification of taking the cash home after each shift.

 

[goofy!]

Would you accept a job that pays monthly?

Many companies (small operations for the most part) in our area have moved to a monthly payroll system. Our firm made the decision over ten years ago to pay our employees monthly. We disclose our payroll policy to all applicants.

We have not had any employee complaints and some believe that it is a positive in that it forces a strict budget. In ten years we have had one employee voluntarily leave the firm (for family reasons) and our staff has remained relatively stable.

From an employer's standpoint this system saves money in payroll expense, helps cash flow (we bill out monthly), and gives us some comfort that our staff members are responsible money managers. Our key employees deal with trust accounts containing client funds.

This morning I was discussing payroll with a government employee and it is her position that employees at her office would revolt if the entity moved to monthly payroll. She stated that there was some discussion that the entity wanted to move to 24 pay periods per year (two per month) rather than 26 (payroll every two weeks) and the blowback was significant. Employees felt that the two months per year when they received three payroll checks was like a bonus.

What are your thoughts?

Both my husband and I work for jobs that pay monthly. He is in high tech and his company has been like this for over 20 years if not more.

I work for a school district.

I think it is more common than not to be paid monthly, especially in the high tech arena.

 

[libraryfreak]

I work in a private college and we get paid monthly.

Me too!

 

[Poohforyou]

My parents were teachers who only got paid 10 months out of the year. If they didn't know how to budget for the summer months we would've been very hungry for 2 months!

I wouldn't prefer to get paid monthly but it would just take some getting used to. What happens to people newly hired if they start on the 2nd and payday is the 1st? That would be one long month with no paycheck!

Many districts allow teachers to set their pay up for 12 months rather than 10. My.company pays 26 times a year at my level but directors are paid monthly. Honestly I don't see what the issue is but then I'm not living paycheck to.paycheck.

 

[diznee25]

DH gets paid every other Friday, so for 2 months out of the year that's 3 paychecks per month! So yea, it would be hard to adjust to 1 pay day per month. Especially depending on how the bills and rent line up. I have a system and know how much money to carry over into the next pay day...

diznee25

 

[sookie]

Would you accept a job that pays monthly?

Many companies (small operations for the most part) in our area have moved to a monthly payroll system. Our firm made the decision over ten years ago to pay our employees monthly. We disclose our payroll policy to all applicants.

We have not had any employee complaints and some believe that it is a positive in that it forces a strict budget. In ten years we have had one employee voluntarily leave the firm (for family reasons) and our staff has remained relatively stable.

From an employer's standpoint this system saves money in payroll expense, helps cash flow (we bill out monthly), and gives us some comfort that our staff members are responsible money managers. Our key employees deal with trust accounts containing client funds.

This morning I was discussing payroll with a government employee and it is her position that employees at her office would revolt if the entity moved to monthly payroll. She stated that there was some discussion that the entity wanted to move to 24 pay periods per year (two per month) rather than 26 (payroll every two weeks) and the blowback was significant. Employees felt that the two months per year when they received three payroll checks was like a bonus.

What are your thoughts?

If it was a great job - of course! My husband was a teacher for 6 years and for the state, that is paid out monthly. We loved it!! Because we were a two income household - we paid the big bills from his check. Mortgage, cars, that sort of thing. All automatic payments for house (electric, for instance) all came out the first week of the month. We had some left over after that as well, but basically everything was paid for the rest of the month. Not sure why, but it felt like it left me a lot more flexibility with my income (or at least, it felt like it!).
I never had an issue at all and I hope that when he goes back to full time teaching (hopefully this year, when he finishes his PhD) that we will go back to his income being on a monthly schedule.