How Long Does Payroll Processing Take?

Many employers don't bother about records once they pay their employees. This point holds in the case of newbie and small business owners.

Most of them don't have much information about preserving payroll records. However, the law requires you to retain records for future references and other situations. So, retain tax and payroll records as per federal and state records retention rules/laws.

It depends on whether you use automated or manual processing and the number of workers you've.  Employers that use manual methods have a tough task ahead.

However, companies that use automated payroll processing systems finish their internal processes within 1 to 2 days. After payroll, it takes 2 to 3 days for wages to get deposited into the employees' bank accounts.

On average, employees get their paychecks within 4 to 5 days after their pay period date.

Most business owners don't give a thought to this vital aspect.  They take this facet casually and feel there's nothing wrong if they delay the process.

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However, employers must pay wages according to their payroll schedules.   Any delay can invite costly penalties and fines.

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Federal law requires companies to pay their workers quickly for hours worked.  Still, state law turns out to be more specific in most cases.

So, don't forget to check your state law to figure out acceptable payroll frequencies.  This could be weekly, bi-weekly, semi-monthly, and monthly. Also, find out if any other regulations apply.

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