Pay day?

[elloelloello]

Just after some opinions on this

DH and I run a small business with 6 employees. Pay day is the last working day of the month, June’s pay day was Friday

We pay by online direct bank transfer. I usually do the payroll the day before pay day and set all the transfers to go out the following day.

Last Thursday our internet was messing around so I decided to go into work early on the Friday morning to do it. I’d done all the accounts side of it, just needed to do the actual bank transfers.

I got in at 7:30, all transfers done by 7:45

They all moaned that they were paid ‘late’.

I assume the money must go in overnight when I do it the day before so it’s normally in their accounts at the crack of dawn, so yes, the money was in later than usual, but I don’t think it was ‘late’

It’s pay day, not pay-before-6am-day

Or is that unreasonable?

Thanks!

Sometimes my bank doesn't clear my money until 9am anyway, despite my pay being processed several days in advance.

That being said, are they on low incomes? Could they have been relying on that money to have got into work that day?

I don’t think it’s low, no - above NLW/average for around here

If there were issues with getting in, they could have called and spoke to me - they’ve all got our private mobile numbers. We’re pretty laid back and they know we’d have helped them out if stuck

Hmmm depends. They could be drawing money out midnight to stop any direct debits being paid (I know one woman who does this). They could be in the habit of checking online each morning and worried when it wasnt there.

Do you have a policy or anything stated on their contracts? Maybe any future contracts could read something like "salaries will be paid by noon on the final working day of the month" to give you some leeway.

Thanks!

Their contracts state that salaries will be paid by direct bank transfer on the last working day of the month

It doesn’t specify a time, so technically, up until 5pm it’s still the last working day of the month, not that I’d ever pay them that late

Their money had all gone into their accounts when I asked them when they came in at 9

“Their contracts state that salaries will be paid by direct bank transfer on the last working day of the month”

In that case you’re fine.

I've had occasions in the past where I've had no money for petrol and had to fill up on the way into work. I expect they checked their online banking when they woke up, saw their money hasn't gone in and panicked!

I usually check online banking on my way to work on payday (it goes in at midnight). If it wasn't there I'd panic.

So you're clearly technically OK to pay them later than usual, but I can see why they're miffed.

Maybe next time email them as soon as you know there's a delay, so they know what to expect?

If I’d woken up at usual time at 6am on payday and found I’d not been paid, I’d panic tbh. I always do some bill paying first thing on payday, as I’m sure many people do. Some people may have needed the money to get to work.

Whilst technically you paid them on the day as promised, they have been used to having their wages available in their bank first thing. I think you should at least have let them know you’d had problems and that they would be paid in the morning. So whilst you weren’t technically wrong, I think you were a bit inconsiderate of your employees.

Thanks!

It usually goes in about 5ish I think. Mine does and I’m the same bank as the work bank.

If they had any issues, they know they only had to call and we’d have helped them out.

We’re quite accommodating with them, happy to give subs if they need it, sick pay, paid time off for dentists appointments, lifts if they’re stuck as we’re quite rural and stuff like that so we’re not ogres

I do understand why they were miffed, but they were all paid by 9am (possibly before, I asked them when they came in if it had gone through and they all said it had)

Related q: all my current and past employers (range from mid sized to massive global cos) always had a payroll cut off for any changes a good 10-14 days prior to actual payday. Why can't they do it as last minute as OP does?

I think that’s standard for most large organisations with regard to changes to be input onto the payroll, to allow payroll staff time to actually make the changes.

OP has six employees so is hardly likely to be caused days of work if, say, one of them changes their hours. But if you have 2,000 employees you need the time to actually do the changes on the payroll software, they simply can’t do 200 changes last minute.

Most payroll depts for large organisations are surprisingly small, where I work we have two people dealing with the payroll for 2,000.

I guess it's blindingly obvious when you put it like that! I shall now go and be suitably embarrassed over there...>

Small business, we have a cut off for hours 7 days before payday. The payroll is run at that point and all the payments tasked up the day after that with 5 days to spare to allow for such issues.
Any alterations of overtime in the last few days of the month are paid the next month.
However, prior to me being a partner a previous bookkeeper was tasking the payments earlier and earlier in the month to help herself out we now have a very clear policy that pay will be in the bank between 9am and 5pm on the last working day of the month. If it goes through earlier you are lucky, but is not to be expected.

There’s only 6 so it doesn’t take very long.

They gave me their hours on Thursday - after they’d been nagged a million times

We use QuickBooks and its all automated so all the hard part had been done - before the internet decided to turn itself off

They were paid on payday, so you have nothing to worry about and they are silly for being miffed. You could have taken all day to pay them if you want.

I have never understood those employees who have direct debits coming out of their accounts on payday and then panic if the money is not there (we had that at work once caused by the bank having issues rather than the transfers not being sent) - one was checking the bank every 5 minutes for her wages because she had a phone bill coming out. I always make sure the direct debits go out at least the day after payday just in case of bank delays.