Part
01
of one
Part
01
Please find examples or case studies of companies that reduced payroll intervals from every other week to monthly.
Hello and thank you for using Wonder for your question about case studies for the adoption of monthly payrolls.
In short, there are no publicly available case studies for companies switching to monthly payrolls. Only a minority of US businesses make monthly payments to employees, which can be due to several factors including state regulation.
Please find a summary of our methodology and our results below.
METHODOLOGY
During our research, we tried to find case studies and results for businesses switching to monthly payments. However, we were unable to locate any sources on corporate websites, trusted media sites, and industry websites.
There are multiple articles about the pros and cons of making a payroll switch to or from a monthly system, but they do not always provide hard data or case examples.
This shortage of case studies could be because several states don't allow monthly payments. Furthermore, only a small portion of US businesses utilize monthly payments to begin with — compared to Europe for example, where monthly payrolls are much more common.
In light of these results, we decided to include alternative sources and articles that might provide some answers to the questions presented in the request.
We will provide a list of these sources with summaries of their insights and content.
1. Government Data on Payrolls
According to the Bureau of Labor Statistics, 21 states don't allow monthly payrolls at all, or only in special circumstances.
A BLS report from 2014 — while older than two years — provides an interesting glimpse into how payday frequencies are distributed among private businesses and also includes analysis of these trends.
— A little more than 10 percent of businesses operate on a monthly payroll.
— The utilization of a monthly payroll is less prevalent with larger businesses and more prevalent with smaller ones.
In our view these statistics significantly decrease the chance of finding a case study for a switch to or from a monthly payroll, and would explain why we could not locate any during our research.
2. Bi-Weekly vs. Monthly Payroll: What You Need to Know
For example, a monthly payroll is easier to manage. However, it cannot be applied to hourly workers. It could also mean financial strain for employees since they have to budget one payment for the entire month.
One notable positive for a monthly payroll is that cost and processing time is less compared to the bi-weekly method.
"There is no definitive answer as to which payroll schedule, bi-weekly or monthly, is best for your business and employees. There are pros and cons of both, along with other details that must be taken into consideration. Regardless of which schedule you choose, it is important to be 100 percent confident in your decision. What matters most is that both the company and employees are comfortable with the payroll process."
3. 3 reasons why getting paid once a month instead of twice a month works for me
— The employee can pay their bills right at the beginning of the month. This also helps them with analyzing their net budget for that particular month.
— Having only one payment per month incentivizes smart expenditure and helps save money.
— Limited payments incentivize annual planning and budgeting for major projects like holidays.
4. 12 Questions You Need to Ask Before Changing Payroll Frequency
An article by Collaborative Solutions describing areas of consideration for making a payroll frequency switch.
Key points include pros and cons of different payroll frequencies, when and how to make the switch, and the effects it will have on administration.
+1. 6 European payroll challenges for US companies
Supplementary article describing differences and similarities between European and American reporting and payroll policies. Recommended for further reading.
CONCLUSIONS
To sum it up, there are no publicly available case studies for companies switching to monthly payrolls. Only a minority of US businesses make monthly payments to employees, which is can be due to several factors including state regulation.
Thank you for using Wonder!