Bi-weekly pay is the most common length of pay period in the U.S. Here is some information about what bi-weekly pay is and why it is a good choice for many employers.
What is biweekly pay?
Bi-weekly pay is when employees are paid every other week on a specific day of the week (e.g., every other Friday). Employees being paid bi-weekly will get a total of 26 paychecks a year.
Why choose biweekly payroll?
- Reduces processing time: Paying employees bi-weekly means that employers only have to process payroll once every two weeks instead of once a week. This reduces the amount of time spent on payroll processing.
- Reduces errors: When payroll is processed weekly, it can increase the chance of errors. However, only processing payroll once every two weeks can significantly help reduce errors which will help maintain employee satisfaction and take stress off of the payroll department.
- Predictable: Employees often feel more secure with a set pay day rather than date since dates can be on any day of the week.
- Easier to calculate overtime pay: It is much easier to calculate overtime pay with a bi-weekly pay than semi-monthly or monthly pay.
Industries that use bi-weekly pay
- Education and health care
- Recreation and hospitality
Semi-monthly vs bi-weekly payroll
The difference between semi-monthly and bi-weekly pay is how often the pay dates occur. Biweekly pay is when employees get a paycheck once every other week. Semi-monthly pay is when employees get a paycheck on two specific dates of the month (e.g., the 1st and 15th of every month).
As an employer, it is important to be educated on the different types of pay periods, so that you can determine which is best for your employees and company. If you have any questions regarding payroll, reach out to us at firstname.lastname@example.org.