We understand that every business operates differently, so we are empowering you with the flexibility to align your payroll periods with your unique business needs. 

If your business operates on a traditional Monday-Friday schedule and you don't require customized payroll periods, you can simply use our default settings. No action is required on your part—our system will automatically apply the default settings. 

Feel free to explore customization options, but rest assured, our default setup has you covered. 

Note: The ability to customize your payroll periods is currently in a closed beta phase and is available to a limited number of customers. Stay tuned for updates, as this feature will be available to all customers soon.

Overview & key information

What do we mean by payroll periods? 

Payroll periods are made up of the following key pieces of information: 

• Pay frequency describes the cadence at which your employees are paid. Employees can be paid weekly, biweekly, or semimonthly. In Justworks, you have the flexibility to select different pay frequencies based on employees’ timecard requirements, or align all employees on a single delayed pay frequency.  
• A workweek is the fixed and regularly recurring 7-day period used to determine the applicability of overtime or double-time for non-exempt employees. 
• A pay day is the day your employees receive their payment. 
  
  

Understanding timecards and non-timecards employees

In Justworks, you can customize payroll periods separately for timecards and non-timecards employees to make sure you have enough time to review and approve payroll for your timecards employees.

Timecards employees are typically hourly or salaried non-exempt employees. They are generally eligible for overtime and must be able to record their hours worked, including any overtime, using a timecard. This ensures they are compensated for all hours worked and overtime in compliance with wage and hour laws.

Non-timecards employees are salaried, exempt employees who are not eligible for overtime and do not receive a timecard. These employees are paid a fixed salary regardless of the number of hours worked.

For further information regarding which employees receive a timecard, please refer to this help center article. 

Payroll period options

Pay frequency

When customizing your payroll periods, you have the option of selecting between three different pay frequency options. By default, timecards employees are paid biweekly, and non-timecards employees are paid semimonthly in Justworks.

• Semimonthly 
  • Employees on the semimonthly frequency receive two payments a month. You have the flexibility to choose a current schedule, where payments are processed before the end of the pay period, or a delayed schedule (arrears), where payments are processed after the pay period concludes. A delayed pay schedule is required to pay timecards employees to ensure your company can review and approve timecards after the pay period has concluded.
• Biweekly 
  • Employees on the biweekly frequency receive their payment every two weeks. When selecting the biweekly pay frequency, employees will receive their payment on a delayed schedule. 
• Weekly
  • The weekly pay frequency allows you to pay your employees on a fixed and regularly recurring 7-day basis. Employees paid weekly will receive their payment on a delayed schedule following the end of the pay period.

Note: You can only select one variation of each pay frequency at a time. For example, if you would like both timecards and non-timecards employees to be on the semimonthly pay frequency, they must both be on a delayed pay schedule with the same first pay day.

Workweek

After selecting your pay frequency, you can customize the 7-day period that makes up your workweek, which determines overtime or double-time eligibility for non-exempt employees in line with FLSA overtime regulations. In Justworks, the default workweek is Sunday to Saturday.

We recommend aligning your workweek with how your business operates. That’s because, depending on the pay frequency you’ve selected, the workweek you choose may impact your non-exempt employees’ timecards and will be used to determine your employees' pay dates. 

For example, if your employees work from Wednesday through Sunday, with Monday and Tuesday off, you can select the Wednesday - Tuesday workweek to ensure that employees' timecards align with when they actually work.

Approximate first pay days

Lastly, select your approximate first pay day based on your anticipated start date. When selecting your first pay day, you can choose between three pay days for the semimonthly frequency (delayed or current) and two pay days (delayed) for the biweekly frequency.

For a smooth transition, we recommend selecting the pay day that aligns best with your previous payroll schedule and business needs.

 

Selecting your payroll periods

You can customize payroll periods during onboarding. First, you’ll work with your Onboarding Manager to designate exemption statuses for your team. For guidance on setting an employee's exemption status, you can visit this Help Center article. Once your employees' exemption statuses have been designated, you can set up your custom payroll periods. 

Note: If you would like to customize your payroll periods, you must do so before your official start date. After your official start date has passed, your company must remain on the same payroll periods. 

 

How to Customize Payroll Periods

1. Choose default options or customize
2. Customize for non-timecards employees
3. Customize for timecards employees
4. Review and submit

1. Choose default options or customize

First, you will have the option to view the default settings based on your expected start date. Select Update under Exemption status & payroll periods.

 

If your start date hasn't been finalized yet, you can click Edit next to your expected start date to enter a date to help you visualize what your payroll periods will look like. If you would like to keep the default options as shown, no action is needed. However, if you would like to customize your payroll periods, you can select Customize. 

After selecting Customize, you will see a calendar view of your current pay days for timecards and non-timecards employees based on your expected start date.

 

Select Next to begin customizing your payroll periods for non-timecards employees.

 

2. Customize for non-timecards employees:

You will be prompted to select your pay frequency, workweek, and approximate first pay day for non-timecards employees.  

As you select your pay frequency, workweek, and approximate first pay date, the dynamic calendar will automatically update to reflect your choices. This feature is designed to help you visualize your payroll periods based on your selections.

Note: Elements of this calendar may change based on your confirmed start date, payroll processing timelines, and other factors. Once your company has premiered, you can access the company calendar for your confirmed processing and pay dates. 

Want all of your employees to have the same payroll periods? No problem, just keep in mind they will be required to have the same workweek and first pay day, for both timecards and non-timecards employees. 

Once you have selected a pay frequency, workweek, and approximate first pay day for your non-timecards employees, select Next to set up payroll periods for your timecards employees. 

 

3. Customize for timecards employees:

Like you did for non-timecards employees, you will be prompted to select your pay frequency, workweek, and approximate first pay day for timecards employees. Use the same dynamic calendar to visualize payroll periods based on your selections.

If you would like your non-timecards and timecards employees to be on different pay frequencies, select the pay frequency, workweek, and approximate first pay day that works best for you. However, if you would like everyone to be on the same frequency, you must select the same workweek and approximate first day as you did for non-timecards employees.

Select Next to review your payroll periods. 

 

4. Review & Submit:

If everything looks as intended, simply click Submit to finalize your choices. 

As a reminder, you can change your payroll period selections up until your start date. After your official start date has passed, you will not be able to change your payroll periods.

Need help setting up payroll periods?

We understand that customizing your payroll period can be a bit confusing, so we are here to help you every step of the way. You will be walked through this process with your Onboarding Manager, and to make this process even easier, we’ve created a step-by-step video guide that walks you through each part of the setup process.

If you have any questions, please do not hesitate to reach out to your Onboarding Manager for support—we’re here to help.

 

State-specific compliance considerations

As you explore the new customization options for your payroll periods, keep in mind that each state has unique rules, regulations, and compliance requirements regarding payroll periods, and several states require weekly or biweekly pay periods for some or all employees. To ensure your business remains compliant, we recommend reviewing our state-specific Compliance Starter Guides, along with the Department of Labor’s resource and The Scoop for key state-specific laws and regulations to keep in mind.

We’re here to support you every step of the way. If you have any questions or need further guidance, don’t hesitate to reach out. Our team is ready to help you navigate these regulations and set up your payroll periods with confidence.

 

Frequently Asked Questions

What elements of payroll periods can I customize?

You are able to customize your payroll periods by selecting the pay frequency, workweek, and approximate first pay day based on whether you want a current or delayed schedule. 

What is the difference between a timecards and a non-timecards employee? 

A timecards employee is an hourly employee or any employee who is not exempt from receiving overtime pay and must have the option to enter their hours into a timecards (hourly employees and salary non-exempt employees). A non-timecards employee is an employee who is paid a fixed salary and exempt from overtime and will not be given a timecard (salary exempt employees).

Can I revert back to the default payroll periods or make a change if needed?

You can adjust your payroll periods until your official start date. 

Can I pay my employees on a monthly basis? 

At this time, Justworks does not support a monthly pay frequency.

How does customizing my payroll periods affect taxes and deductions?

Customizing payroll periods allows you to align your payroll periods with your unique business needs. However, customizing your payroll periods does not affect the withholding and remitting of taxes and deductions. 

Are there any legal restrictions to keep in mind before changing my payroll schedule?

Yes, different states have varying regulations regarding payroll periods, workweeks, and pay frequencies, and several states require weekly or biweekly pay periods for some or all employees. You should review the Compliance Starter Guides, along with the Department of Labor’s resource and The Scoop for relevant state-specific guidance.

What happens if my business operates in multiple states? 

If you operate in multiple states, it's crucial to ensure compliance with the pay day laws in each state. Our resources can help you stay compliant across various locations.

Who can I contact if I have questions about setting up my payroll periods? 

Your Onboarding Manager is here to assist you with any questions or concerns. Feel free to reach out to them, and they can help answer any questions you have regarding setting up your payroll periods.

Will customizing our payroll periods affect employee PTO balance?

No, customizing your payroll periods will not affect employees' PTO accrual. However, depending on the type of PTO policy, your payroll periods may impact the timing of when your employees accrue PTO. 

Does customizing payroll periods impact overtime calculations?

Yes, customizing payroll periods can impact overtime calculations based on your designated workweek. When a workweek spans two pay periods, any overtime worked during the first pay period will be paid out as part of that first payment. Any overtime worked in that same workweek during the second pay period will be paid out in the second payment.

Can I customize payroll periods for different departments or individuals within my company?

At this time, you can only customize payroll periods based on exemption status, (i.e., for timecards and non-timecards employees). Payroll periods are not customizable on the individual or department level. 

Can I set different payroll periods for timecards vs. non-timecards employees?

Yes, you can select different pay frequencies, workweeks, and approximate first pay day for timecards and non-timecards employees. Alternatively, you can put everyone on the same payroll periods if that works best for your business.

Can I set the same pay frequency for timecards and non-timecards employees, but have different workweeks and pay dates? 

At this time, only one variation of a pay frequency is supported. Therefore, if you would like your timecards and non-timecards employees to be paid on the same pay frequency, their workweek and first pay day need to also align. 

How will bank holidays impact customized payroll periods?

If there is a bank holiday that takes place in-between the date payroll is processing, and your intended pay date, your payroll will be processed one day earlier.