Change Payroll Period

[ngaham]

Hey Neil,
I'm back with another question. Currently, our church had a pay period of Friday throughout Thursday. The previous bookkeeper would pay them on Thursday (the last day of their working week for the week they just worked). Everyone is salary, except the secretary. She would turn in her hours on Thursday night and the check would be written (I know, very unconventional). Since I have taken over I want to stop this practice and change the pay period to Sunday - Saturday. Here are my thoughts, need a second opinion.
Just finished a pay period today, April 6. I want to issue a pay period for the salary individuals from 4/7-4/8 for their full salary, but hey won't get the check until Thursday the 13th, as they normally would. I would then run another payroll with dates of 4/9-4/15 and a check Day of 4/20.

The hourly employee would receive pay for her hours worked until 4/8 on 4/13. Then I would her the 9th-15 on the 20th.

Will this work out?!

[NeilZ]

Hey Neil,
I'm back with another question. Currently, our church had a pay period of Friday throughout Thursday. The previous bookkeeper would pay them on Thursday (the last day of their working week for the week they just worked). Everyone is salary, except the secretary. She would turn in her hours on Thursday night and the check would be written (I know, very unconventional). Since I have taken over I want to stop this practice and change the pay period to Sunday - Saturday. Here are my thoughts, need a second opinion.
Just finished a pay period today, April 6. I want to issue a pay period for the salary individuals from 4/7-4/8 for their full salary, but hey won't get the check until Thursday the 13th, as they normally would. I would then run another payroll with dates of 4/9-4/15 and a check Day of 4/20.

The hourly employee would receive pay for her hours worked until 4/8 on 4/13. Then I would her the 9th-15 on the 20th.

Will this work out?!

FWIW ... we usually pay all our employees on the 15th and last day of the month. Of course, we're a small church with just a pastor and an admin. However, it would work in your situation too, but the employees would have to get used to it.

That said, what happens at the end of the month, or the end of the year. The day the check is dated is the day that the IRS uses to determine what the taxable income is for the year. If you have a pay period of Dec 24th thru 30th, but they'll get a check on the 5th of Jan 2018. What does that do to the budget??

This is why a 15th and end of the month check dates work out.

Frankly, this is one of those issues I'd find a friendly accountant and hash it over with them.

[ngaham]

Hey Neil,
I'm back with another question. Currently, our church had a pay period of Friday throughout Thursday. The previous bookkeeper would pay them on Thursday (the last day of their working week for the week they just worked). Everyone is salary, except the secretary. She would turn in her hours on Thursday night and the check would be written (I know, very unconventional). Since I have taken over I want to stop this practice and change the pay period to Sunday - Saturday. Here are my thoughts, need a second opinion.
Just finished a pay period today, April 6. I want to issue a pay period for the salary individuals from 4/7-4/8 for their full salary, but hey won't get the check until Thursday the 13th, as they normally would. I would then run another payroll with dates of 4/9-4/15 and a check Day of 4/20.

The hourly employee would receive pay for her hours worked until 4/8 on 4/13. Then I would her the 9th-15 on the 20th.

Will this work out?!

FWIW ... we usually pay all our employees on the 15th and last day of the month. Of course, we're a small church with just a pastor and an admin. However, it would work in your situation too, but the employees would have to get used to it.

That said, what happens at the end of the month, or the end of the year. The day the check is dated is the day that the IRS uses to determine what the taxable income is for the year. If you have a pay period of Dec 24th thru 30th, but they'll get a check on the 5th of Jan 2018. What does that do to the budget??

This is why a 15th and end of the month check dates work out.

Frankly, this is one of those issues I'd find a friendly accountant and hash it over with them.

The church currently doesn't operate on a budget (I know) so I don't have that concern. In the other scenario, the Jan 5, 2018 check go towards income in 2018. The taxes go towards the year the check is issued, per the IRS.

[NeilZ]

The church currently doesn't operate on a budget (I know) so I don't have that concern. In the other scenario, the Jan 5, 2018 check go towards income in 2018. The taxes go towards the year the check is issued, per the IRS.

Well, many churches do operate on a budget especially when they have to figure minister's salary, denominational requirements towards retirement funds, etc.

In your case, its not an issue so whatever works for you. I'd still check with an accountant to make sure nothing comes back to haunt you.