Why does my new employer need to hold my paycheck for 2 weeks?

[Anonymous]

I starting working in a new position 2 weeks ago. I was informed that we would be paid every 2 weeks but today I was told by a few other employees that our employer has to hold our paychecks for 2 weeks. Why? What is the purpose of this? My boss is out of town so I have no one to ask. TIA.

[Anonymous]

because they can't make payroll?

[Anonymous]

Anonymous wrote:because they can't make payroll?

Exactly what I thought. They should pay you interest!

[Anonymous]

I don't know. It could be something odd. But many companies have a two week delay between the close of the pay period and when the check is issued. It takes a certain amount of time to get everyone's time sheets, enter it in, generate and check the payroll, and then cut checks or direct deposit. It could be that.

[Anonymous]

Used to work for a place that waited to collect payment from customers before they paid you. All the risk is on you. But that stopped when they were sued.

[Anonymous]

Anonymous wrote:I starting working in a new position 2 weeks ago. I was informed that we would be paid every 2 weeks but today I was told by a few other employees that our employer has to hold our paychecks for 2 weeks. Why? What is the purpose of this? My boss is out of town so I have no one to ask. TIA.

You started a new position or started at a new job? What you are describing, if you started a new job sounds right. I get paid on the 1st and the 15th for the prior 15 day cycle.

If you start at my company on the 1st of September, your first paycheck will not be for a MONTH. Your first paycheck would be cut on the 30th of September for the 1st-14th of September. It works in your favor when you quit because you get a check 2 weeks for a full cycle after you have already quit, which fills the gap when you are at your new job waiting to get paid.

[Anonymous]

21:03, wouldn't the first paycheck be cut on the 15th for work done from the 1st to the 14th?

[Anonymous]

Anonymous wrote:21:03, wouldn't the first paycheck be cut on the 15th for work done from the 1st to the 14th?

Because there is no way you could get payroll done in less than a day. If payroll closed on the 14th, how could everything get completed that night in order to get checks in for the next day. I have never seen a company have less than a week to get payroll completed, and most organizations outsource this to ADP, and a wait of one to 2 weeks is completely standard. However it hurts the worst when you start at the very beginning of a new cycle.

[Anonymous]

Anonymous wrote:I don't know. It could be something odd. But many companies have a two week delay between the close of the pay period and when the check is issued. It takes a certain amount of time to get everyone's time sheets, enter it in, generate and check the payroll, and then cut checks or direct deposit. It could be that.

OP here. This is most likely the reason. I just started 2 weeks ago and they pay me every 2 weeks so it makes sense that they can't do payroll in one day's time. I guess I should've thought that this would happen but I've been busy with other things. Oh well. Thank God for credit!

[Anonymous]

Anonymous wrote:.... But many companies have a two week delay between the close of the pay period and when the check is issued. It takes a certain amount of time to get everyone's time sheets, enter it in, generate and check the payroll, and then cut checks or direct deposit. It could be that.

I do payroll. This is the answer.

[Anonymous]

This is how it works in the fed govt as well. We get paid every 2 weeks, roughly 2 weeks after the pay period ends. Processing of the payroll takes that long.

I've never worked anywhere where I've gotten paid within a few days after the close of the pay period - it's almost always about 2 weeks behind.

[Anonymous]

Everywhere I have ever worked has done this.

[Anonymous]

OP here. I am now an hourly employee. In all of my previous positions, I've been salaried and have always been paid on the Friday for the 2 previous weeks so I guess I am not used to this yet.