Semimonthly pay Employers who choose this schedule can either pay their employees on the first and 15th of the month or on the 16th and last day of the month. Get the tool Download now. Recommended for you How to do payroll What are payroll deductions? How to choose a payroll provider for your business. Related resources insight Top 5 most common payroll mistakes.
View now. Download now. Femcare Health and Beauty Read now. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Notify me of follow-up comments by email. Notify me of new posts by email. Skip to content If you are just starting out your business and planning to hire employees, your initial task on the checklist will be setting up a payroll system , classifying employees, and selecting pay periods i.
What is a Pay Period? Weekly Pay Period Employees will receive 52 paychecks per year and the payroll is processed on the same day every week — Thursday or Friday. Advantages: Best option if you want to hire hourly employees. Employees love getting paid frequently, which will increase their morale, productivity, and efficiency at the workplace.
Disadvantages: Most payroll software charges you per pay run or monthly plus no. So, the payroll cost increases significantly if you run payroll every week. Fortunately, CheckMark Payroll allows unlimited employees and unlimited payrolls at no additional cost. You need to spend a lot of time collecting time cards and processing payroll every week.
Employees expect to get paid on the same day, so you need to be prompt in paying them their wages on the same day every week. Bi-Weekly Pay Period Employees will receive 26 paychecks per year and the payroll is processed on a specific day every two weeks — Friday. Advantages: Best option if you have hourly employees.
It will save you precious time when you pay your employees bi-weekly instead of weekly. You will be processing payroll every other week. Employees will receive paychecks more often in a month increasing their punctuality and productivity at the work.
Significantly reduces the payroll costs when compared to weekly pay. Disadvantages: During some years, there will be 27 pay periods so you have to pay your employees additional wages. Since payday occurs once every two weeks, some months will have three paychecks. This decision could increase payroll costs by adding another pay period, depending on the software used to calculate paychecks.
As a result, this approach is more expensive but also easier for operations. Simply skipping the date, however, is not acceptable. Regarding benefits, employers may decide to apply deductions to 26 pay periods and not the 27th.
This would prevent any possible miscalculations, over-billing errors, or unforeseen contribution overages e. For example, in the month of January , an organization could decide to deduct benefits from the first two paydays and simply not apply deductions in the third and final payday. Stay on track from January through December with this comprehensive HR calendar , featuring everything you need to know about major holidays, key compliance requirements, ACA deadlines, and more.
Additionally, HR needs to adhere to the myriad compliance notices that apply to employee benefits in For more information about how you can prepare for the new year, follow the BerniePortal blog.
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