When do pay increases typically go into effect according to the provided information?

Study for the ADP Payroll Specialist Exam. Sharpen your skills with flashcards and multiple choice questions. Hints and explanations included to help enhance your preparation. Get ready for success!

Pay increases typically go into effect on July 1 payroll, which aligns with common mid-year review cycles in various organizations. This timing allows employers to assess performance and budget adjustments made throughout the first half of the year. Implementing pay increases at this point can facilitate smoother transitions in compensation structures, enabling employees to experience the benefits of their raises as they enter the second half of the year. This timeline is also strategically advantageous for many businesses, as it coincides with summer, a period when employee morale and productivity can be enhanced by recent evaluations and adjustments in compensation.

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