Changing payroll schedule to monthly

[Spoiler]

So ... asking for a friend, a friend that has already asked their accountant - who didn't help much, which says a lot.

They run a small company with 5 employees.
Currently they get paid every 4 weeks (so 13 paydays a year).
Employees also get a weekly attendance bonus, for turning up to work!
So, the 4 week period ends, hours/bonus info gets sent over to payroll people (3rd party), and 3 days later salary is paid.

Now, they want to go to a monthly payroll schedule.
It looks like most monthly payrolls pay salary on the last working day of the month. So this looks easy enough, but they're just trying to figure out how to include the hours/bonus calculations in this.
Assume they could do the period cutoff on the last Friday in the month, and then pay salary on the last working day of the month, needing a few days in between to get payroll calculated. And if the last Friday is too close to the last day, have the cutoff the Friday before?

Any suggestions from those with payroll experience ?

[WordIsBond]

You could do the cutoff the 4th Friday of the month and run payroll on the 3rd, that would give plenty of time.

But it's dumb to do a weekly bonus for a monthly payroll. Change the bonus computation to be on a monthly basis and save yourself a lot of grief. Then, cut it off on the 25th every month. Or, cut it off on last day of the month and do payroll on the 3rd.

I don't have a payroll experience, but I've done various things with employee incentive/bonus structures. Can't imagine running a weekly incentive on a monthly payroll. What a pain that would be.

[Lance]

Surely the 3rd party payroll company are best placed to provide the advice?

[Spoiler]

You could do the cutoff the 4th Friday of the month and run payroll on the 3rd, that would give plenty of time.

But it's dumb to do a weekly bonus for a monthly payroll. Change the bonus computation to be on a monthly basis and save yourself a lot of grief. Then, cut it off on the 25th every month. Or, cut it off on last day of the month and do payroll on the 3rd.

I don't have a payroll experience, but I've done various things with employee incentive/bonus structures. Can't imagine running a weekly incentive on a monthly payroll. What a pain that would be.

Thanks, sounds reasonable. I'll suggest they look at the bonus structure.

[Spoiler]

Surely the 3rd party payroll company are best placed to provide the advice?

It's their accountant doing the payroll, so you'd think they'd have more to offer, but no it seems not.

[Lance]

Changing payroll schedule to monthly

It's their accountant doing the payroll, so you'd think they'd have more to offer, but no it seems not.

really?

So, the 4 week period ends, hours/bonus info gets sent over to payroll people (3rd party), and 3 days later salary is paid.

perhaps you should rewrite this... as it reads to me like NOT the accountant.

Best advice then is to sack them. Immediately.

[Spoiler]

really?
perhaps you should rewrite this... as it reads to me like NOT the accountant.

Best advice then is to sack them. Immediately.

Sure, I was trying to imply it isn't done in-house, but yes, accountant would be more precise. I've previously told them to change accountant, and the didn't.