Choosing a Payment Interval
An employer is required by law to pay its employees on a regular schedule. In the state of Texas, employees exempt from overtime pay according to the Fair Labor Standards Act are required to be paid at least once a month. Employers are required to pay wages to employees not covered by this first stipulation at least twice a month. Furthermore, when wages are paid twice a month, pay periods must consists of equal number of days or as close as possible. An employer is also required to designate the paydays to its employees. Otherwise, the employer’s paydays are automatically designated as the 1st and 15th of each month.
Common Payment Intervals
Regardless of an employer’s payday schedule, they are still required to post notices of indicated paydays in a conspicuous place in the workplace. That way, employees are fully aware of when they should expect to be paid. Examples of acceptable pay schedules in Austin include the following:
- Pay day: specific day established by employer
By law, an employer must also deliver their employees their wages no later than the designated payday date.
Contact an Austin Accountant For More Information
If your company is establishing its payroll system, then seeking the payroll management guidance of an accountant can be a wise decision. An accountant can help you minimize the chances of making costly mistakes or violating labor and wage laws; our team will surely provide you the guidance you need to make sound financial decisions. Contact an Austin accountant today by filling out the form at the top of this page.