How Often Should I Run Payroll? Weekly, Monthly, or Something In Between?

When it comes to payroll, there’s no one-size-fits-all. Whether you’re an established employer or about to take the exciting step of hiring your first member of staff, deciding how often to run payroll is an important decision, and one that can affect cash flow, admin workload, and even employee satisfaction.

In this week’s blog, we’re breaking down the different payroll frequency options, the pros and cons of each, and what to think about before making your decision. We’ll also talk about whether you can run multiple payroll schedules at once and if it’s possible to switch frequencies later down the line. Let’s get into it.

Weekly Payroll

Weekly payroll is exactly what it sounds like: employees are paid every week, usually on the same day. It’s particularly common in sectors like construction, hospitality, and retail where short-term contracts or variable hours are the norm.

Pros:

• Cash flow for staff: Many employees love being paid weekly—it gives them faster access to their money and can help with budgeting.

• Flexibility: It suits businesses where hours or shifts vary week to week.

• Employee morale: For some industries, it’s just what workers expect.

Cons:

• More admin: Running payroll every week means four times the workload compared to monthly.

• Higher costs: If you’re outsourcing payroll, the fees may increase with frequency.

• Time pressure: Weekly deadlines for payroll, RTI submissions, and payslips can feel relentless.

  
  

Monthly Payroll

Monthly payroll is the standard for most salaried positions. It keeps things tidy and predictable.

Pros:

• Easier cash flow management for the business: You’ll know exactly when wages are due and can plan accordingly.

• Lower admin load: Less frequent processing and reporting to HMRC.

• Consistent with other outgoings: It often aligns with monthly billing cycles for things like rent and utilities.

Cons:

• Not always ideal for hourly workers: If your staff have variable hours or shifts, a month between paydays might be too long.

• Budgeting challenge for employees: Some people find it harder to manage money across four or five weeks.

  
  

Fortnightly and Four-Weekly Payroll

These two options fall somewhere in between. While less common, they can work well for specific business models.

• Fortnightly payroll (every two weeks) gives employees more frequent pay but halves the admin load compared to weekly.

• Four-weekly payroll (every 28 days) provides consistency but can result in 13 pay periods a year rather than 12, which needs to be accounted for.

These options might suit businesses looking for a compromise between regular staff payments and manageable admin.

Can You Mix and Match How Often You Run Payroll?

Yes—you can run more than one payroll schedule within the same business. For example, you might pay office staff monthly and your shop floor team weekly.

However, it’s important to:

• Keep each payroll clearly separated.

• Make sure all RTI submissions to HMRC are done correctly and on time.

• Understand the additional admin burden of managing multiple frequencies.

This is where working with a payroll provider (like us!) can make life easier—we’ll keep it all in line and compliant.

Can I Change My Payroll Frequency?

You can—though it’s best not to make changes too frequently as it can confuse staff and create unnecessary admin.

If you do want to change payroll frequency:

• Communicate clearly with your employees in advance.

• Check employment contracts to ensure changes are allowed or properly updated.

• Plan ahead to avoid cash flow surprises.

• Speak to your payroll provider or bookkeeper to ensure everything runs smoothly with HMRC reporting.

  
  

Other Things to Think About

Choosing how often to pay your team isn’t just about preference—there are a few technical bits to be aware of too:

• Real Time Information (RTI): Every payroll must be reported to HMRC on or before payday, regardless of how often you pay.

• Pension contributions: These are calculated based on earnings within the pay period—frequency can affect contribution timings.

• Holiday pay calculations: If staff work variable hours, payroll frequency can influence how you work out entitlement.

• Software setup: Some software packages are better than others for handling multiple payroll schedules, so it’s worth checking compatibility.

  
  

How We Can Help

At Bay Bookkeeping Solutions, we work with a wide variety of small businesses—some pay weekly, some monthly, and some with mixed schedules. Our flexible payroll service takes care of:

• Calculations, submissions and payslips

• CIS deductions where needed

• Pension auto-enrolment

• Keeping things compliant and timely

Whether you want someone to fully run your payroll or just need occasional support (like quarterly reviews or help with tricky changes), we’re here to make payroll one less thing to stress about.

Final Thoughts

The best payroll frequency is the one that works for you and your team. There’s no right or wrong, just what fits your business size, cash flow, and staff needs. Whether you’re paying once a month or every Friday like clockwork, what matters most is doing it correctly and consistently. If you ever need a hand figuring it all out, you know where we are.