What is described as a payroll schedule?

A payroll schedule is essentially a plan that defines the frequency at which employees receive their pay. This could include different pay periods such as weekly, bi-weekly, semi-monthly, or monthly. Understanding the payroll schedule is crucial for both employers and employees, as it affects cash flow for the business and expectations for employees regarding when they will receive their wages.

The payroll schedule helps in the collaboration between management and accounting departments to ensure that funds are available for payroll when needed, and it allows employees to budget their finances based on expected pay dates. Knowing the frequency of pay can also impact employee satisfaction and retention, as timely and predictable payments contribute to a positive workplace environment. Thus, a payroll schedule serves as a foundational aspect of payroll management, ensuring everyone is clear about when compensation will be issued.