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Why Do Employers Hold The First Paycheck?

If you have started a new job recently, you may wonder why an employer is holding the first paycheck. There might be different reasons, and some of them are described in this article. You will find out why the first paycheck is withheld and what you can do to change this situation.

Why do employers hold the first paycheck?

If you wonder “Can a job hold your check?”, the answer is yes. Many employers hold the first paycheck, and this is a common situation in many companies. We wonder why this is so and what you can do to receive your first paycheck on time. 

You should know that an employer does not have a legal right to hold your paycheck. However, this usually happens in certain situations. You may be hired in the middle of the pay period, or you can be employed by a company that holds the first paycheck for a longer time. 

No matter the situation, your experience with the first paycheck might be very frustrating. The politics of the company may be very difficult to understand and you may end up with the check that comes too late. 

why do employers hold first paycheck

The first paycheck payment is organized by the company, and it depends on the policies and regulations of the exact company. Different companies come with different rules, and most of the time, you cannot change these rules. The payments might be conducted each week, biweekly, or on specific dates. At the same time, the late paycheck might be a result of the complicated paperwork that a company must conduct. 

All of these reasons might be present, and you usually have no other choice than to be patient and wait for the first paycheck even when it comes late. Some employers will have a tactic of holding the first paycheck until you quit. This could be very unfair and you can ask for legal authorities to get involved in the case. In this situation, you can sue the company and get the necessary compensation

What is the amount of the first paycheck? 

Many significant factors affect the first paycheck. The company officials must do the extended paperwork to determine the amount of the paycheck and the amount of the taxes that need to be paid. In most situations, there are factors like taxes, Medicare, and employment benefits that need to be considered. 

We have federal, state, and local taxes that must be considered alongside medical insurance, dental insurance, and life insurance. All of these benefits affect the first paycheck and these expenses must be included in the overall calculations. 

What are the types of payment schedules? 

There are several pay schedule types that companies apply in their regulations. The pay schedules usually depend on the type of work and the organization. Therefore, you can be paid weekly, biweekly, semi-monthly, or monthly. 

Weekly payments are reserved for waiters, cashiers, and similar workforce. They usually receive their paychecks at the end of the week, and pay schedules usually fall on Fridays. 

Biweekly payments are for administration workers, marketing consultants, and similar professionals. The pay is usually every two weeks and this means that a worker gets a paycheck twice a month. 

Semi-monthly payments are reserved for teachers, writers, and other employees who get their wages on the two specific days in a month. This could be on the 5th and 20th of each month. 

Monthly wages are for salespersons and other professionals who are paid each month. The paycheck is released once a month and this kind of payment is not a common practice. 

If your employer is holding the first paycheck, you can take some necessary actions to receive that paycheck on time. You can talk to a manager or you can file an official complaint. If none of these work, you can resign and find another working atmosphere where the paychecks are issued regularly. 

Diana Coker
Diana Coker is a staff writer at The HR Digest, based in New York. She also reports for brands like Technowize. Diana covers HR news, corporate culture, employee benefits, compensation, and leadership. She loves writing HR success stories of individuals who inspire the world. She’s keen on political science and entertains her readers by covering usual workplace tactics.

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