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Is it OK to pay workers just once a month?

by on
in Small Business Tax Deduction Strategies

Q. Is it legal to adopt a once-a-month payroll for hourly employees?

A. The Pennsylvania Wage Payment and Collection Law provides that “wages ... earned in any pay period shall be due and payable within the number of days after the expiration of said pay period as provided in a written contract of employment or, if not so specified, within the standard time lapse customary in the trade or within 15 days from the end of such pay period.” (43 P.S. § 260.3)

Accordingly, you may lawfully pay your employees monthly if you advise them in advance in writing. Otherwise, you should pay them no less frequently than every 15 days (unless there is a different standard in the trade).

Keep in mind that changing to a monthly system might not be well-received by hourly employees.

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