3 Key Differences Between Semi-Monthly vs Bi-Weekly Payroll

Bi-weekly payroll ensures employees receive their wages the same day every two weeks. Semi-monthly payroll goes off of two dates in the month, generally the 1st and the 15th, thus the day it falls on per month can differ. Yet each payment schedule has some key differences and choosing the right one is crucial. So let’s dive deeper into the differences between Semi-Monthly vs Bi-Weekly Payroll. A semi-monthly payroll schedule is a payment plan that pays employees twice a month, often on the 15th and final day of the month. Employees are provided paychecks or direct deposit payments once payroll processing is completed, depending on the employer’s requirements.

A semimonthly payroll is paid twice a month, usually on the 15th and last days of the month. If one of these pay dates falls on a weekend, the payroll is instead paid out on the preceding Friday. A biweekly payroll is paid every other week, usually on a Friday. With a biweekly pay schedule, there are two months in the year where employees receive three paychecks. Employees who are paid semimonthly always receive two paychecks per month. In the most practical terms, that means employees who are paid bi-weekly receive more paychecks than employees who are paid semi-monthly.

Amount of Paychecks per Year

A pay period is when a company rewards its employees for their job. Employers often specify the pay period from daily to weekly, bi-weekly, semi-monthly, or monthly. The most typical payment schedule is bi-weekly when employees are paid every two weeks. With semimonthly payroll, you pay employees on specific dates, such as the 15th and last weekday of each month. Because you run payroll less for semimonthly frequencies than biweekly, your employees’ paychecks will be greater. Biweekly paychecks will be less money, but you will provide the two additional paychecks to make up the difference.

If you use one of these providers, you will pay more per year to run biweekly as opposed to semimonthly payroll. Or, you could choose a provider, like Patriot Software, that charges you the same amount, regardless of how many times you run payroll. Running semimonthly payroll can be particularly difficult to track when weekends and holidays come into play. If payday falls on a holiday or weekend, you will either need to advance or delay payroll, adding another responsibility to your plate.

Weekly

In the United States bimonthly may be used as a noun to describe periodicals, the plural noun form is bimonthlies. Bimonthly is derived from the prefix bi-, which means two, twice, double, doubly, occurring twice in every one or once in every two. It comes from the Latin bi-, meaning twice, double, and weekly from the Old English word monað. By using this site, you are agreeing to security monitoring and auditing.

On the other hand, only 19% of employees are paid using the semimonthly payroll frequency. If you run a biweekly payroll, employees receive their wages the same day each pay period. For example, your employees are consistently paid every other Friday, so you run payroll on the same day each pay period. Another difference between semimonthly vs. biweekly pay is what day of the week you run payroll and which day employees receive their paychecks.

How does this change affect my compensatory time accrual?

Before choosing, keep in mind that states regulate how often you must pay employees. You might not be able to use biweekly or semimonthly pay frequencies in certain states. Check with your state before choosing how often you run payroll. Deciding between biweekly vs. semimonthly payroll can be a difficult decision, especially because federal pay laws state that you must keep the same frequency throughout the year. Knowing the difference between biweekly vs. semimonthly payroll can prevent financial setbacks, keep your business legally compliant, and more.

Payroll is one of the most important aspects of running your business, yet shopping for payroll services can be confusing. We recommend you take the three key differences and pros and cons between semi-monthly vs bi-weekly payroll when making your decision. Before we get any further, it’s important to note there are four common types of payroll frequencies which are weekly, monthly, and the two we are discussing, bi-weekly and semi-monthly. There are four common pay period options, including weekly, biweekly, semimonthly, and monthly.

Semimonthly Is Also Mentioned In

Additional paychecks can be very beneficial during the holiday season. Businesses with hourly employees or commission employees may not find a semi-monthly frequency is the best option. When overtime and specific hours need to be determined weekly, it can be challenging to adapt to a semi-monthly pay schedule. Since the commission and hourly wages need to be divided between two different pay periods, it can be difficult for employers to adjust without needing to do it separately. When you pay employees semimonthly, you can count on paying the same amount to employees each month.

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• Let’s say you have 10 employees who each earn $1,500 in gross wages per paycheck.
• A semi-monthly payroll schedule is a payment plan that pays employees twice a month, often on the 15th and final day of the month.
• Deciding on a pay frequency for your small business is an important decision.
• The extra two paychecks for biweekly pay frequencies can set your business back if you don’t properly prepare for months with three paychecks.

Employees are paid once a month, usually on the same day of each month. Employees are paid twice a month, usually on the same day of each month. Employees book balance are paid every week, typically on the same day of the week. Sign up for a demo of Tapcheck to learn how it can revolutionize your current paycheck system.

Dictionary Entries Near semimonthly

Companies that run payroll with a biweekly frequency dole out a total of 26 paychecks per year. Companies that use semimonthly pay give employees 24 paychecks per year. If you are paid semi-monthly, you will be paid $1,750 per paycheck before taxes (your salary divided by 24 checks per year).

• A biweekly payroll is paid every other week, usually on a Friday.
• Businesses with hourly employees or commission employees may not find a semi-monthly frequency is the best option.
• Whether a business’s employees are salaried or hourly, it will likely make sense for them to choose one pay frequency over the other.
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Now let’s assume that another company pays its employees semimonthly on the 15th day and the last day of every month. If it hires a new employee at an annual salary of $52,000 the employee will be earning $2,166.67 ($52,000 divided by 24 paydays) during each semimonthly pay period. The employee’s pay records will indicate a gross salary of $2,166.67 each semimonthly payday.