We are considering moving our exempt employees to a semi-monthly payroll, rather than monthly. The change would be effective with the first pay date in January 2010. I have been running one employee on the semi-monthly pay schedule since July 1. I am really concerned about getting the tax withholding to calculate correctly. I have had some problems with that so far.

1.  Has anyone has experience with using a semi-monthly payroll cycle for salaried, contract employees?
2.  Has anyone had experience with converting from monthly to a semi-monthly payroll cycle?

Lea McCormick
St. Catherine's School

I'm sorry I cant assit with your request - but I have posted questions regarding monthly payroll and received no responses so I had to jump at the chance to ask you about yours. 

We are considering movign to monthly payroll with all employees exempt and non exempt- Do you currently run payroll monthly for non exempt?  If so what pay period dates do you use and what pay date? How do you manage overtime issues with the work week falling accross two months?

We have a group of housekeeping and groundsmen who are classified as non-exempt and are paid bi-weekly (26 pays per year). Only the contract faculty and staff are paid monthly. Sorry but I cannot really help you with the OT issue. Our pay periods end on Sunday and they are paid the Friday immediately following. I think OT is not an issue because any payroll includes a full pay cycle. Wish I could be of more help.

 Lea