Biweekly Pay

If you have recently become a business owner, or if you are in the planning stage of starting one, you have to decide how and when you are going to pay your employees. Will it be monthly, semimonthly, biweekly, or weekly? One of the more popular options is biweekly pay. 

What is biweekly pay? 

Biweekly pay is a type of payroll option where employers pay their workers every other week on a particular day of the week. With biweekly pay, employees are guaranteed to receive a paycheck once every two weeks, no matter what date of the month it is. For example, you may choose to pay your employees every other Friday. Having biweekly pay results in 26 paychecks in a year. 

Is biweekly pay the same as semimonthly pay? 

These two terms can easily confuse someone at first glance. However, the answer is no, they are not the same. 

• Semimonthly 
• Employees are paid twice a month on two specific dates. 
• The employer will choose which two specific dates of the month, regardless of which day of the week they will be. 
• For example, every 15th and 30th of the month is a common semimonthly pay period. 
• Employees will receive 24 paychecks per year.
• Biweekly
• Employees are paid every other week. 
• The employer will choose which day of the week employees will be paid. 
• For example, every other Friday is a common biweekly pay period. 
• Employees will receive 26 paychecks per year. 

What are some benefits of biweekly Pay? 

Biweekly pay offers advantages for both employers and employees. For employees, receiving a paycheck once every two weeks allows them to budget their finances easier. Since a biweekly pay period gives them an exact day of the week when they will receive their earnings, they can be more consistent with their budget plans. For businesses, having biweekly pay for employees can reduce the chances of payroll errors because payroll processing is only once every two weeks and not every week.