As you can see above, the pay period ended on 3/25, but the Bookkeeping for Painters pay date isn’t until 3/31, which means the payment has accrued. Just remember, it’s super important to pay overtime correctly or else you could face fines. Among those 44 hours, 28 hours fall in one pay period (before March 30), while 16 hours in the current one (after March 30).

Semi-monthly vs. bi-weekly payroll: What’s the difference?

I couldn’t find a way to explain this mathematically and haven’t tried too hard yet, but I accepted this and figured it’d work itself out. Only 18% of employers use a semimonthly pay frequency, making it the second least popular pay schedule after monthly (used by only 4.4% of employers). Should you adopt a semimonthly payroll schedule for your company? Understanding your pay period is key to managing your finances well. Whether you’re paid weekly, bi-weekly, semi-monthly, or monthly, having clear records is essential for budgeting and tracking your income.

• Having the semi-monthly pay schedule makes it easy to set up automatic bill payments and plan for long-term goals.
• Employees are paid twice per month, often on the 15th and last day of the month—24 pay periods per year.
• This processing leads to the pay date, which is when the funds are distributed to employees.
• The selected pay period frequency directly influences how various payroll components are calculated and processed.
• August allows you to stay on track and set yourself up for a successful fall season.
• The key factor is the advance notice; simply altering the process without informing you is not allowed, but changing the payment conditions is otherwise permissible by the employer.

Different Types of Pay Periods

Companies can avoid costly penalties by reviewing and adhering to specific laws. You are required to pay employees within seven days after the end of the pay period. Employees can take legal https://www.biodanzapolo.com/church-payroll-services-church-plus-system/ action against you if there is a failure to pay within seven days.

October 2025

• Maintaining a consistent policy for these adjustments is important for employee expectations and payroll accuracy.
• April’s paychecks give you the chance to set aside money for any summer expenses.
• Stay on track with your financial goals, and enjoy the rest of the summer.
• Take the time to review your spending habits and make sure you’re still on track to meet your financial goals.

With your paychecks, use this opportunity to reassess your current budget. Review your spending habits, and make sure you’re still on track. Whether it’s saving for a down payment on a house or paying off debt, use your consistent income to stay on track.

What Are the Pros and Cons of a Semimonthly Pay Schedule?

• The semi-monthly pay period calendar simplifies the process of monitoring your financial progress.
• Monthly payrolls are easier to manage from an administrative perspective since they only require processing once per month.
• A pay period is the recurring schedule on which employees earn wages and are paid.
• An employer’s payroll tax deposit schedule is determined by the size of their payroll and the country’s tax regulations.
• When a scheduled pay date falls on a holiday or weekend, the pay will be disbursed the prior business day.
• Think of semi-monthly payroll as payday showing up twice a month, like clockwork.
• I work 40 hours a week on the exact same days and have been really dumbfounded at how this system works and feel like I may be being shorted somehow.

Managing payroll is a complicated matter, especially for multi-country teams. Companies have to overcome challenges that go beyond standard payroll processes given the issues of time zones, different local holidays and exchange rate fluctuations. Below are key nuances to consider when managing a global payroll analytics system to ensure employees are paid on time. Our 2025 guide explains pay periods, cutoff dates, and how to choose the best schedule for your business. In 2020, there will be 27 biweekly pay periods, due to the Leap Year, starting on the 3rd of January and ending on the 31st of December. There pay period 5th and 20th were 26 biweekly pay periods in 2019, starting on the 4th of January and ending on the 20th of December.

• Since semi-monthly pay periods don’t align perfectly with a weekly schedule, overtime calculations can get tricky.
• This is true when a firm uses outside help for payroll, which ups the cost as these helpers may ask for fees each time they handle payroll.
• I’d like to change the schedule to be every other Friday, for the previous two weeks work.
• For specific questions regarding semi monthly payroll, please email @email.
• Running payroll only once a month may sound attractive on the surface, but most companies find it isn’t practical in most applications.
• Additionally, a monthly pay period can put a strain on employees managing their cash flow, since so much time goes between pay periods.