How Often Should I Pay My Employees/Contractors?

How often you pay other people is completely YOUR decision… 

… however, it is best to pay them on a predictable schedule that best fits YOUR business’s situation.

You need to make sure that you are going to have enough money to in the bank to pay your employees/contractors. You don’t want to be scrambling around on payday trying to make sure there is enough money, or worse, putting in your own money to cover payroll.

The best way to plan paying your people is to also have a schedule for CHARGING your clients. 

For example, do you want to pay your people once a month? Then charge your clients on the 1st, and pay your people on the 15th. That gives your clients 15 days to pay their bills, and plenty of time for you to remind them if you need to. (To make it even more hassle-free, get them set up with automated billing!)

Do you already have a system where the money is coming in and going out all at the same time, and you aren’t sure if your account is going to go negative? It’s never too late to change your pay schedule! Just let your people know the change is coming, and don’t let any days/hours fall through the cracks. 

Do you need someone to help you with your payroll needs?

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