Investing in robust payroll technology can simplify the transition and ongoing management of biweekly pay, saving time and reducing the risk of payroll-related issues. Before implementing biweekly pay, assess your organization’s payroll technology and systems. Ensure that your payroll software can handle the calculations required for biweekly pay. If necessary, consider upgrading or adapting your systems to accommodate this change.
One of the checks will be received in mid-month and the second check will arrive either at the beginning of the next month or on the last day of the current month. Usually, such payments are done on either the 1st or 15th day of the month or on the 15th and the final day of the month. The payroll processing differs in that the full-time bi-weekly paid employees are compensated for 80 hours on each pay date. On the other hand, the semi-monthly approach compensates the employees for 86.67 hours on every pay date. The employer arrives at the hours for the bi-weekly approach by dividing 2,080 hours by 26 days. For the employer to arrive at the hours on a semi-monthly approach they divide 2080 hours by 24 days.
How to choose a payroll schedule for your business
Semi monthly payroll means that employees are paid twice a month, on the 15th and the last day of the month. Bi-weekly payroll means that employees are paid every other week, on the same day each pay period. According to the Bureau of Labor Statistics, 36.5 percent of employees are paid biweekly. For businesses, it can be less expensive to pay employees semi-monthly instead of bi-weekly.
However, semimonthly paychecks for full-time salaried employees account for 86.7 hours of work. Semimonthly pay schedules for salaried semi monthly vs bi weekly employees are straightforward. Typically, employers will divide an employee’s salary by 24, or the number of yearly paydays.
