Periodic payroll is the most common type of payroll. Employees are paid on a regular schedule such as weekly, bi-weekly, semi-monthly, or monthly.
Among these options, bi-weekly and semi-monthly pay schedules are particularly common in many organizations…
1. Bi-Weekly Payroll – In a bi-weekly payroll schedule, employees are paid every two weeks, typically on the same day of the week. This results in 26 pay periods per year. Bi-weekly pay periods provide a consistent schedule for both employees and employers and align with the standard 52-week calendar year.
2. Semi-Monthly Payroll – In a semi-monthly payroll schedule, employees are paid twice a month, usually on specific dates such as the 15th and the last day of the month or the 1st and the 15th of the month. Semi-monthly pay periods result in 24 pay periods per year. Semi-monthly pay schedules provide a predictable and regular payment frequency but may require additional processing for months with different numbers of days.
While bi-weekly and semi-monthly pay schedules are the most common, some organizations may also use weekly or monthly pay schedules based on their specific needs, industry practices, and regulatory requirements. The choice of payroll schedule depends on factors such as cash flow management, administrative efficiency, employee preferences, and compliance with labor laws and regulations.
Regardless of the pay schedule used, employers must ensure timely and accurate payment of wages to employees, compliance with payroll tax laws and regulations, and adherence to internal payroll policies and procedures. Effective payroll management is essential for maintaining employee satisfaction, morale, and compliance with legal and regulatory requirements.
