Why I Changed My Company’s Payroll Cycle (and How It Fixed a Big Problem)
Running a small business isn’t about avoiding problems—it’s about solving the same ones better each time they come up. One of the problems I kept running into was our payroll schedule. It hit us twice a year like clockwork, and every time it did, it hurt. We’d have a month with three payroll cycles instead of two, and even though our income stayed the same, our expenses spiked hard.
This wasn’t just an accounting issue—it was creating real stress for me, my management team, and especially our cleaning techs who had to work harder to help us bring in cash to meet the numbers. It wasn’t sustainable, and it wasn’t fair to anyone.
The Problem With Biweekly Payroll
Most people think biweekly payroll is just how it’s done. Every two weeks, checks go out. But here’s the thing: twice a year, that cycle turns into three payrolls in a single month, and unless your revenue scales with it (ours doesn’t), it breaks your budget.
I realized I couldn’t keep repeating the same mistake every year. So we made the call to switch from biweekly to semi-monthly payroll—on the 5th and the 20th of each month.
Why This Payroll Change Makes Sense
Here’s what this simple change solved almost immediately:
Better cash flow: Now, payroll is in sync with how and when we get paid by clients.
Predictable costs: No more surprise third paychecks draining the bank account.
Stronger morale: Team members get slightly larger checks and can better plan their own budgets.
Less stress: My leadership team and I don’t have to scramble twice a year trying to “make it work.”
How We Made the Transition Fair
One of my biggest concerns was how to handle the transition without screwing anyone over. Here’s what we did:
We skipped the May 30th paycheck but paid a larger check on June 2nd that covered three weeks of work instead of two.
We gave everyone advance notice and explained the change in plain English—no legalese.
We let people know they could reach out if the transition created a hardship. I meant it—and still do.
And just so it’s clear: this is totally legal. We verified everything with Oregon and Washington labor law. The key is communication and making sure no one goes unpaid for time they’ve worked.
What This Means for the Business
Since we made this change, our operation has felt steadier. It’s one of those behind-the-scenes adjustments that doesn’t seem exciting, but it ends up changing everything:
We can plan payroll with more confidence.
We stop overworking people just to survive the occasional shortfall.
And we create more consistency, which—let’s be honest—is gold in small business.
Final Thoughts
If you’re running a service-based business and your payroll schedule feels like it’s running you, not the other way around, consider switching to a semi-monthly payroll cycle. It’s one of those strategic moves that doesn’t get talked about enough but can seriously improve operations, morale, and cash flow all at once.
And if you’re an employee reading this—thank you for rolling with this change. I know it’s not always easy when the system changes, but I promise it’s built for your stability too, not just the company’s.