What to Keep in Mind for Payroll Scheduling When You Have Employees in Multiple States

For payroll scheduling purposes, it matters where your employees live and work. A one-size-fits-all approach rarely works because different states have different requirements for payroll scheduling. 

In some states, you’ll be fine with monthly payments. In other states, you must pay your employees at least twice a month or every other week. To make matters even more complicated, you may have to consider your employee's type of work to determine payment frequency. 

For example, if you have a manual labor employee in New York, you’ll probably need to pay him or her weekly. States with laws requiring more regular payments operate under the assumption that lower-income and blue-collar workers shouldn’t run the risk of not being paid. The shorter the pay period, the less likely an employee will get burned if a company declares bankruptcy.  

The bottom line? The safe bet is to pay your employees frequently. If you spread out the payroll schedule, you risk bumping into issues when you have a remote workforce. If you can, consider paying all employees weekly. That is impossible if you have commissioned employees whose pay is based on a monthly calculation. But if you have pay structures that will allow it, consider increasing your pay frequency. In fact, some employers even pay daily.

Also, if you outsource your payroll, you should double-check with your payroll provider to make sure it knows what it is doing on payroll scheduling for remote employees. Your payroll provider should agree to cover any damages and legal fees if you get sued for not paying an employee on time. This should be in the contract. If the payroll provider does not provide those contractual assurances, it’s time to find a new company or negotiate your contract terms. Paying wages is expensive. You don’t want to mess up the timing and put yourself in a situation where you pay wages and attorney fees.