1. Weekly pay periods

A weekly pay period means employees receive wages once per week, on the same day each time. Over a standard year, this results in 52 paychecks per employee. For example, if the workweek runs from Sunday to Saturday, payroll may be processed the following Monday, with payment issued every Friday.

Weekly schedules are common in industries with hourly employees, especially where hours vary weekly. This includes construction, hospitality, manufacturing and certain service roles. Because each paycheck reflects only one week of work, employees can easily track their earnings and overtime.

Advantages of a weekly pay schedule

• Easier for hourly payroll calculations: Weekly pay simplifies wage and overtime calculations since each pay period covers a single week.
• Preferred by hourly workers: Receiving pay more frequently can make it easier for employees to manage cash flow, which may help attract and retain talent.
• Supports flexible scheduling: Weekly payroll aligns well with roles that involve rotating shifts or variable hours.

Considerations for employers

• Higher administrative workload: Weekly payroll requires processing 52 pay runs each year. This means more time spent reviewing hours, managing deductions and issuing payments.
• Increased processing costs: If you use a third-party payroll provider that charges per run, a weekly schedule may increase your annual payroll expenses.
• Potential for an extra pay period: Some calendar years contain 53 weeks instead of 52. If your payday falls on the first and last day of that year’s calendar cycle, your business may issue 53 paychecks. Planning ahead can help account for this in your annual payroll budget.

Weekly payroll can offer transparency and flexibility, especially for teams with shifting schedules. However, the added workload and potential costs may make it better suited for companies with established payroll systems in place.

2. Bi-weekly pay periods

A bi-weekly pay period means employees are paid every two weeks on a set day, resulting in 26 paychecks in a standard year. This is one of the most common pay schedules used by U.S. employers and can apply to both hourly and salaried workers.

Each pay period typically covers two consecutive workweeks. For example, the pay cycle may run from Sunday of the first week to Saturday of the second.

Bi-weekly pay is widely used in industries such as healthcare, retail, technology and professional services. For salaried employees, the annual salary is divided by 26 to determine the gross amount per paycheck. For hourly employees, it’s easy to track standard hours and calculate overtime based on each individual workweek.

Advantages of a bi-weekly pay schedule

• Predictable timing: Employees receive pay on a consistent schedule, which simplifies budgeting and payroll planning.
• Straightforward overtime calculations: Since the period covers two distinct workweeks, overtime calculations remain clear and compliant.
• Lower administrative cost: Compared to a weekly schedule, a bi-weekly payroll reduces the number of pay runs to 26 per year, which may lower third-party processing fees and internal workloads.

Considerations for employers

• Uneven monthly payouts: Most months will include two pay periods, but two months per year will include a third. This can affect monthly payroll forecasting, so it’s helpful to budget for those additional payouts.
• Benefit deductions: Benefits such as health insurance are typically calculated on a monthly basis. Your payroll system may be configured to spread monthly deductions evenly across 26 pay periods to avoid inconsistencies.
• Occasional extra pay period: Similar to weekly payroll, bi-weekly schedules may include an extra paycheck in certain years. This happens when there are 27 paydays instead of 26, typically if the first payday falls on January 1 or 2 in a standard year, or on January 1 in a leap year.

Bi-weekly payroll offers a good balance between employee satisfaction and administrative efficiency. With proper planning, it can support consistent payroll operations while aligning with a wide range of compensation structures.

3. Semi-monthly pay periods

A semi-monthly pay schedule means employees are paid twice a month on fixed calendar dates—most commonly on the 15th and the last day of the month. This results in 24 pay periods per year, regardless of the specific day of the week.

Unlike bi-weekly pay, which follows a 14-day cycle, semi-monthly pay is based on calendar dates. This means the number of days in each pay period can vary. For example:

• The first pay period typically runs from the 1st to the 15th
• The second pay period runs from the 16th to the end of the month

Because month lengths vary, some pay periods are longer than others. February, for instance, has fewer days than March, which can lead to slightly uneven work periods across the year.

This pay structure is common in industries where employees earn a fixed salary. Finance, accounting, technology and consulting companies often use semi-monthly schedules, especially when payroll is stable and predictable. For salaried employees, the annual salary is divided into 24 equal portions.

Advantages of a semi-monthly pay schedule

• Fixed pay dates: Paying employees on two specific dates per month simplifies internal planning and offers consistency for payroll teams.
• Easier benefit deductions: Since many benefit premiums are calculated monthly, it’s easy to divide those costs evenly across the two pay periods.
• Predictable cash flow: Payroll expenses fall on consistent calendar days, which can support budgeting and cash flow management.

Considerations for employers

• Overtime tracking: Overtime calculations for hourly or non-exempt employees often require closer attention. Since a seven-day workweek can span two different pay periods, tracking weekly hours is essential for compliance.
• Adjusting for weekends and holidays: If a pay date falls on a weekend or holiday, the company typically issues payment on the preceding business day. This adds a layer of planning to ensure on-time processing.

Semi-monthly pay can be a good fit for companies with salaried teams and predictable work schedules. It provides clear pay dates and supports consistent financial planning but may require extra steps if you also employ hourly workers.

4. Monthly pay periods

A monthly pay schedule means employees receive one paycheck per month, typically on a fixed date such as the last business day of the month. This results in 12 paychecks per year. Each paycheck reflects the full month’s work, whether for salaried or hourly employees.

For salaried workers, monthly pay is calculated by dividing the annual salary by 12. For hourly employees, gross pay is based on the total number of hours worked during the month.

Monthly payroll is less common than other schedules, particularly for hourly roles. It’s sometimes used in government agencies, educational institutions or other organizations where most employees are salaried and pay cycles are consistent.

Advantages of a monthly pay schedule

• Lower administrative workload: Processing payroll monthly saves time and may lower third-party service fees.
• Simplified financial planning: With only one payroll expense per month, forecasting and budgeting become more straightforward for finance teams.

Considerations for employers

• State law requirements: Some states require employers to pay certain types of employees more frequently than once per month. For example, manual laborers or hourly workers may need to be paid at least bi-weekly. Review your state’s labor laws before choosing this schedule.
• Employee cash flow: Monthly pay can create challenges for employees who prefer shorter intervals between paychecks. This may affect employee satisfaction, especially for hourly roles or early-career professionals.
• Hourly pay complexities: For hourly employees, a monthly schedule may complicate wage calculations. If the month ends midweek, hours must be split carefully to avoid errors and ensure overtime is handled correctly.

Monthly payroll may suit organizations with predictable workloads and salaried teams, but it’s important to weigh administrative efficiency against employee needs and compliance considerations.

FAQs about pay period schedules

What’s the difference between a pay period and a pay date?

A pay period is the specific range of dates during which an employee works and earns wages. A pay date is the specific day an employee receives payment for that period. There’s usually a delay of a few days between the end of a pay period and the pay date to allow for payroll processing.

Can I use different pay period schedules for different employees?

Yes, you can use different pay schedules for different groups of employees, as long as your practice is fair and not discriminatory. For example, it’s a common practice to pay hourly employees on a bi-weekly schedule to simplify overtime calculations while paying salaried employees on a semi-monthly schedule.

Can I change my company’s pay period schedule?

You can change your pay schedule, but you should give advance written notice to your employees before the change takes effect. Advance notice requirements vary by state, so check your local labor laws. Clearly communicating the reasons for the change helps ensure a smooth transition.