How to Add A New Pay Schedule
How to Create a Pay Schedule
Creating a pay schedule in FreePayroll allows you to define how often and when your employees are paid. This article explains how to configure a pay schedule, including our new flexible options for monthly pay periods.
📅 Step 1: Choose the Pay Frequency
When creating a new pay schedule, start by selecting the Pay Frequency. You can choose from:
- Weekly – every week
- Fortnightly – every 2 weeks
- Four Weekly – every 4 weeks
- Monthly – once per month
📍 Step 2: Define the Pay Period End Date
For Weekly, Fortnightly, or Four Weekly:
- Choose a Pay Period End Date from the calendar.
- This date will be used as the end of the first period, and we’ll repeat it based on the frequency.
For Monthly:
You don’t select a specific calendar date. Instead, choose how the pay period ends each month using one of these options:
Option | Description |
|---|---|
Specific Day | e.g., the 28th of each month. If the day doesn't exist (e.g. 31st in Feb), it defaults to the last valid day. |
Last Day of the Month | Always uses the last calendar day (e.g., 31st, 30th, 28th depending on month). |
Last Weekday | Uses the last Monday–Friday that month (skips weekends). |
Last Specific Weekday | Choose a day like "Last Friday of the month". |
Then, you select the first month this rule should apply from (e.g., "May 2025").
💰 Step 3: Set the Payment Date Rule
Now choose when employees should receive payment, relative to the pay period end date.
Options:
- On – pay exactly on the pay period end date
- Before – pay a number of days or weekdays before the end date
- After – pay a number of days or weekdays after the end date
- Before or on – pay on the end date if it matches, otherwise before
- After or on – pay on the end date if it matches, otherwise after
Then choose:
- Unit:
Calendar day(s)
Weekday(s)
Custom weekday (e.g., "2nd Friday after the end date")
- Offset:
How many days or weeks before/after to pay.
Example:
“2nd Monday after the pay period end date”
→ Use "After", unit "Custom weekday", offset = 2, weekday = Monday.
🔁 Step 4: Preview the Calendar
We show a full preview of the pay periods and payment dates across the tax year, so you can verify that your settings look correct.
✅ Summary
Pay Schedule setup is flexible and fully supports:
- Complex monthly configurations like “last Friday of each month”
- Custom payment timing rules like “3 weekdays before period end”
If you need help choosing the best configuration, our support team is here to help!
Updated on: 01/07/2025
Thank you!