Pay cycles and pay frequency¶

A pay cycle is how often you pay your staff. It is also called the pay frequency. The common cycles are weekly, fortnightly and monthly.

The pay cycle sets the rhythm of your payroll. It decides how often you run a pay, work out the tax, and pay your staff. Fair Work sets the rules for how often employees must be paid.

In one line

A pay cycle is how often you pay staff — weekly, fortnightly or monthly. Fair Work says employees must be paid at least monthly, and the award or agreement sets the cycle.

Why this matters¶

The pay cycle affects your cash flow and your admin. It also affects your staff, who plan around their pay day. Getting the cycle right, and paying on time, is part of meeting the Fair Work rules.

What you will learn¶

What a pay cycle is
The common pay cycles
How often employees must be paid, and where the cycle is set

Understanding the concept¶

The common pay cycles are:

Weekly — you pay staff once a week.
Fortnightly — you pay staff once every two weeks.
Monthly — you pay staff once a month.

Fair Work says employees must be paid at least monthly. This is the minimum. Many employers pay more often than this.

The pay cycle for a job is usually set by an award or a registered agreement. An award is a document that sets minimum pay and conditions for an industry or job. A registered agreement is an agreement made at a workplace. If an award or agreement does not set the cycle, Fair Work says the employee must be paid at least monthly.

For accountants & bookkeepers

Fair Work states that most awards or agreements set when employees must be paid — weekly, fortnightly or monthly. Where an award or agreement does not specify, the Fair Work Act requires pay to be made at least monthly. Some awards set a narrower rule; for example an award may require weekly or fortnightly payment, or allow the employer and an employee to agree on a different cycle.

Example¶

A café pays its staff each fortnight. The cycle comes from the award that covers the café's staff. Every two weeks the café runs a pay, works out the pay and tax for each person, and pays them. Because the café pays fortnightly, it is paying more often than the at-least-monthly minimum.

Common mistakes¶

Paying less often than monthly — Fair Work requires pay at least monthly.
Picking a cycle without checking the award or agreement that applies.
Changing the pay cycle without checking what the award or agreement allows.

How this works in myaccountant¶

In the app — you run a pay run for each pay period. myaccountant works out the pay, the PAYG withholding and the super for that period, produces a payslip for each employee, and lodges Single Touch Payroll (STP).

Key points¶

A pay cycle is how often you pay staff.
The common cycles are weekly, fortnightly and monthly.
Fair Work says employees must be paid at least monthly.
The cycle is usually set by the award or the registered agreement.
If no cycle is set, pay must be at least monthly.

Learn next¶

General information only — not tax, super or financial advice.

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