What advantage do big companies, ones with over 3,000 employes, gain by paying their employes like this?

Question

Company I work for recently went from paying every week to paying every other week.

Other than saving paper work, do they gain interest on our money when they pay every other week.

Just curious.

Thanks.

Answer 1

Well they save in many ways.For example the payroll staff won't be required every week.Most companies pay by cheque,so they half thier bank charges.Most companies also have a method for employees to cash thier cheque at work on pay day.This involves armoured trucks and guards.This cost is also halved.They(company)also have the use and interest on the money for a week at no cost.They save too on insurance as thier payrll only has to be ins, for 26wks not 52wks

Answer 2

Yes. The money that would have been paid is growing interest in their bank account until the following week.