The Four-Minute Information to How Biweekly Pay Works


One of many first issues your new enterprise is prone to face is pay interval — must you pay your workers weekly? Biweekly? Month-to-month?

In fact, you will need to take into accounts each the wants of your workers, and your HR payroll directors. In different phrases, what’s the best system to your HR crew to course of, and what is going to make most of your workers happiest?

Biweekly is an efficient possibility to think about, and it is also the preferred possibility within the U.S. — the U.S. Bureau of Labor Statistics reviews 36.5% of personal companies have determined to make use of biweekly pay as their pay system of alternative.

In case you’re questioning which pay interval possibility is greatest to implement at your organization — or in the event you’re simply curious what biweekly pay entails — hold studying.

What Is Biweekly Pay?

Biweekly pay means you pay your workers as soon as each two weeks, on a set day you select.

For example, for example you select to pay your workers as soon as each two weeks, on Friday.

Check out the next calendar for the months of January and February, 2019:


feb-biweekly-payCalendar courtesy of

As you may see, it does not matter which day of the month you pay your workers — you may pay them on the 4th one month, after which the first one other. It is solely vital you pay as soon as each two weeks. 

When you begin the yr, you will pay your workers as soon as each two weeks. This would possibly sound easy, however meaning for 2 months out of the yr, you will have three pay durations as an alternative of two.

Professionals of Biweekly Pay:

  • Your HR crew must course of payroll as soon as each two weeks, which may scale back the probability of payroll errors and time spent on payroll processing, compared to weekly pay durations.
  • Workers obtain extra pay checks through the yr than semimonthly, even when these paychecks are barely decrease than they might be on a semimonthly schedule.
  • A biweekly system is extra constant for workers — as an example, an worker can count on to obtain a paycheck on each different Friday. With a semimonthly pay interval, the times of the week will range, with an worker probably receiving a paycheck on a Monday, after which a Wednesday.
  • It probably makes your workers happier than working on a month-to-month schedule, which requires workers to price range for an extended time frame.

Cons of Biweekly Pay:

  • In case you use biweekly pay, your enterprise have to be ready for the months with three paychecks, and price range accordingly to make sure the payroll account has sufficient cash for these further bills.
  • Your payroll supplier would possibly cost your enterprise for every payroll run, which ends up in larger annual charges than in the event you go for semimonthly.
  • Your workers would possibly need to receives a commission each week, in order that they have extra constant cash coming into their accounts.
  • In case your trade operates on contract work, the place tasks can stall for durations of time, workers would possibly admire weekly pay for a way of safety.

Finally, it’s important you take into account what your opponents are doing, and what makes essentially the most sense to your workers, when selecting a pay interval. Your choice would possibly range relying on the scale of your HR crew, whether or not you could find a payroll supplier with honest payroll charges, and whether or not your workers are salaried or hourly staff.

The Distinction Between Semimonthly and Biweekly

At first look, these two phrases sound awfully comparable — as soon as each two weeks or twice a month are the identical factor, aren’t they?

Truly, they don’t seem to be. Semimonthly means your workers receives a commission on two particular days of the month, no matter once they fall. For example, you would possibly select to pay your workers on the 15th and 30th of each month. Biweekly, then again, guarantees workers a paycheck as soon as each two weeks no matter what day of the month it’s — therefore, within the calendars above, workers obtain paychecks on the 4th, 18th, 1st, and 15th of the month.

Semimonthly means workers obtain 24 paychecks per yr, as an alternative of 26. Moreover, the 15th and 30th of every month may fall on a vacation or weekend relying on the month, so your HR crew wants to make sure they’re on-top of processing deadlines and pay dates to make sure your workers nonetheless obtain a paycheck.

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