Are you wondering “Why do jobs hold your first paycheck?” Read this article to learn more about jobs hold your first paycheck.
After you’ve optimized your resume and concluded your job search, you may find yourself in an awkward financial situation.
It’s fairly common for your new employer to withhold your first paycheck after you’ve gotten hired at the company, and not everyone understands why they do this.
So, why do jobs hold your first paycheck? Don’t worry, we’ve got you covered.
Let’s take a look at everything you need to know.
So… Why Do Jobs Hold Your First Paycheck?
This actually depends on a handful of factors and isn’t limited to a single common reason.
Let’s dive in.
The Company Is Small
Newer companies often have less cash to spare for all of their financial obligations. This also includes paying new employees.
Any business that operates legally will always pay you for the time that you’ve worked. Smaller (and younger) companies will highly benefit from paying new hires a bit later than normal, effectively ‘borrowing’ their labor.
So, you may find that you don’t see your first check for around three weeks after you start working.
To better keep track of your finances at your job, you can take advantage of pay stub generation software. Visit https://www.paystubcreator.net/ for more info.
You Started at an Odd Time in a Pay Period
Unless you started your job on the first day of a new pay period, you’re going to experience a partial pay period that you’ll be compensated for during the following pay period.
For example, let’s assume a company pays its employees on the 1st and 15th of every month. If you start working on the 22nd of the month, then you won’t have worked for a full pay period at your new company yet.
So, you’ll end up getting paid on the 15th of the following month. Your check, though, will include your first week of work, effectively paying you 150% of your normal compensation (three weeks of labor versus a normal two weeks of labor).
From here, you’ll continue to get paid on the 1st and 15th of every month.
What If I Still Have Concerns?
If you’re unsure about your situation at your new job, contact the company’s HR representative with your concerns. They’ll explain everything to you in detail about your compensation.
Additionally, you can contact HR if you have questions or concerns about how you’ll be compensated. Typically, direct deposit is standard for many companies, but you may receive a check instead.
If you haven’t received your payment by the following pay period after you begin working, you’ll also need to contact HR to find out the reason for the delay (and uncover any potentially illegal behavior).
But it doesn’t have to be.
With the above information about ‘why do jobs hold your first paycheck’ in mind, you’ll be well on your way to put your mind at ease.
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