How Often Should I Run Payroll for My Staff?

Choosing the right payroll schedule affects both staff and administration. Learn whether weekly, fortnightly, or monthly payroll is best for your organisation.

Introduction

One of the most important responsibilities for any employer is paying staff accurately and on time. Whether you run a charity, small business, or community organisation, deciding how often to run payroll affects cash flow, administration, and staff satisfaction.

There is no single rule for how frequently you must pay employees. However, the schedule you choose must be consistent, compliant with employment contracts, and suitable for your organisation’s size and resources. This article explains the main payroll frequency options, their advantages and disadvantages, and how to choose the right one for your team.

Understanding Payroll Frequency

Payroll frequency refers to how often employees receive their pay. The most common options are:

  • Weekly

  • Fortnightly

  • Four-weekly

  • Monthly

Each option has different administrative and financial implications, so it is important to choose a schedule that aligns with your organisation’s needs.

Weekly Payroll

Weekly payroll means staff are paid once a week, typically on the same day (for example, every Friday). It is common in industries with hourly workers or variable shifts, such as hospitality, retail, or construction.

Advantages:

  • Staff receive money more frequently, which can improve morale and financial stability.

  • It suits roles with changing hours or overtime, as pay reflects actual work completed each week.

Disadvantages:

  • Higher administrative workload because payroll must be processed every week.

  • Greater potential for errors due to more frequent calculations.

  • Shorter time frames for correcting mistakes or submitting Real Time Information (RTI) reports to HMRC.

Weekly payroll can work well for smaller teams with straightforward pay structures, but it requires strong organisation to stay compliant.

Fortnightly or Four-Weekly Payroll

Some employers prefer to pay staff every two or four weeks. This system strikes a balance between weekly and monthly payroll. It is used in organisations where employees expect regular income but the employer wants to reduce administrative workload.

Advantages:

  • Fewer payroll runs compared to weekly schedules, reducing processing time.

  • Regular payments help employees manage their personal finances.

Disadvantages:

  • Pay dates vary from month to month, which can be confusing for budgeting.

  • Accounting and cash flow management can be slightly more complex.

This option can suit charities and small organisations with part-time or shift-based staff who want regular payments but can accommodate slightly less frequent pay days.

Monthly Payroll

Monthly payroll is the most common approach in the UK, particularly for office-based roles, salaried staff, and charities. Employees are usually paid on the same date each month, such as the last working day.

Advantages:

  • Simplifies administration, as payroll is only processed 12 times a year.

  • Easier for cash flow planning and budgeting.

  • Ideal for salaried employees whose pay does not vary much month to month.

Disadvantages:

  • Staff receive money less frequently, which can be challenging for those managing tight budgets.

  • Mistakes may take longer to correct if identified after payday.

Monthly payroll works best for stable organisations with consistent pay rates and well-defined roles. It is also the easiest schedule to integrate with accounting systems and HMRC submissions.

Choosing the Right Payroll Schedule

When deciding how often to run payroll, consider the following factors:

  1. Nature of your workforce
    Hourly or casual workers often prefer weekly or fortnightly pay, while salaried staff usually expect monthly payments.

  2. Administrative capacity
    Weekly payroll increases workload and may require dedicated payroll staff or outsourcing. Smaller charities or businesses often find monthly payroll more manageable.

  3. Cash flow management
    Paying employees weekly means cash leaves the organisation more frequently. Monthly payroll provides longer intervals between payments, giving better control over finances.

  4. Employment contracts
    Your chosen pay frequency must match the terms outlined in employment contracts. Any change in pay frequency requires written consent from employees.

  5. Software and automation
    Payroll software can simplify calculations and RTI submissions, making weekly or fortnightly schedules more manageable.

HMRC Requirements

Regardless of how often you pay staff, you must submit Real Time Information (RTI) to HMRC on or before each payday. This includes details of pay, tax, and National Insurance deductions.

You must also:

  • Provide a payslip to each employee every pay period.

  • Pay PAYE and National Insurance to HMRC by the 22nd of the following month (or the 19th if paying by post).

Using payroll software ensures your submissions are accurate and on time, whatever frequency you choose.

Example Scenario

Imagine a small charity, Bright Futures UK, employing four staff members. The team originally used weekly payroll to suit part-time staff. However, as the charity grew, the administrative burden increased.

After consulting their accountant, the trustees switched to monthly payroll. Staff salaries were adjusted accordingly, and everyone was given written notice of the change. Now the charity spends less time on administration, and payroll runs are simpler and more consistent.

This example shows how reviewing payroll frequency can improve efficiency while maintaining fairness to employees.

Can You Mix Payroll Frequencies?

Yes, but it is more complex. Some organisations pay different groups of employees on different schedules. For example, a charity might pay administrative staff monthly but pay event or seasonal workers weekly.

If you choose this approach, keep separate payroll runs and ensure each group’s RTI submissions are correct. Most payroll software allows for multiple pay schedules, but careful management is needed to avoid confusion.

How an Accountant Can Help

An accountant can help you:

  • Decide the most efficient payroll frequency for your organisation

  • Set up payroll systems and software

  • Manage RTI submissions and pension contributions

  • Ensure PAYE, National Insurance, and benefits are calculated correctly

  • Review payroll processes to improve efficiency

Outsourcing payroll to an accountant or payroll bureau can save time and ensure compliance, particularly for charities or small businesses with limited administrative staff.

Common Mistakes to Avoid

  • Changing pay dates without consulting employees or updating contracts

  • Missing HMRC submission deadlines due to poor scheduling

  • Mixing different payroll frequencies without clear records

  • Failing to budget properly for regular pay runs

Avoiding these mistakes helps maintain compliance, employee trust, and financial stability.

Conclusion

How often you run payroll depends on your organisation’s size, cash flow, and the type of staff you employ. Weekly payroll suits hourly workers but increases admin time. Monthly payroll is simpler and cost-effective for most small charities and businesses.

Whatever schedule you choose, consistency and compliance are key. Always submit accurate RTI reports to HMRC, keep clear payroll records, and ensure employees know when they will be paid. With the right planning and support from an accountant, you can run payroll efficiently and keep both your team and HMRC satisfied.