If there's one thing your employees should be able to rely on, it's having an on-time paycheck. Unfortunately, many companies drop the ball by waiting until the last day of the period to start processing payroll. While it may go off without a hitch on most occasions, putting off one of the most important HR duties until the last minute can also lead to significant issues.

Complex Payroll Details

Payroll processing can sometimes seem like a cut-and-dry process. For the most part, it is! But some of your employees will have unique issues that require special attention.

For example, some of your workers might have earned overtime during the last pay period. Things like wage garnishments or worker's compensation could complicate things as well. Your company may also have multiple pay rates for a single employee, work with independent contractors, and more.

Payroll can get complicated quicker than most realize. You only create delays and headaches when you wait until the last day.

Late Payments

Of course, with more processing work comes the chance for delayed payments. What happens if you don't process payroll in time? Or what if you start rushing to get everything done by the end of the day and make mistakes that mess with your employee's paychecks?

Both scenarios can lead to ugly situations you want to avoid. Your employees deserve on-time paychecks, and delays due to last-minute processing is a disservice to them.

Compliance and Legal Issues

Finally, you must consider state labor laws and compliance matters. Many states have strict regulations that define pay frequency. For example, California states that most wages must be paid at least twice during the calendar month on regularly scheduled paydays.

While exceptions exist, those laws encourage companies to maintain pay regularity. Missing paydays because of your own late processing can put your company at risk for penalties.

Those are just a few reasons why you should avoid last-minute payroll processing. Fortunately, there are ways to automate the process. Invest in good payroll software, and you never have to worry about paying your employees on time.

Author Resource:-

Emily Clarke writes about employee management, benefits and payroll service. You can find her thoughts at employee management blog.