While Friday is the most traditional day for payday, you can usually choose whatever day of the week you like to run payroll as a payday, as long as it doesn’t conflict with other payday rules. For most companies, it’s preferable to pick a weekday that is easy for employees to remember, rarely falls on a holiday and is a day most employees are in the office. Just like your employees are juggling income versus when bills are due, your business needs to balance cash flow with payroll. How often you run payroll could make the difference between staying in business and losing everything.

• With 52 weeks in a typical year, it comes down to 26 paychecks every year.
• If it’s a holiday, payday might shift to the previous business day—or occasionally the next business day, depending on company policy.
• Or use our global payroll software to consolidate your global payroll data and standardize your payroll processes, anywhere.
• February’s paydays are perfect for making any mid-year adjustments to your budget.
• The regular income stream helps you to avoid financial stress, and promotes financial wellness.
• The way it is set up lets people with a set salary plan better because they know when they get paid.
• This article will explain a pay period, its different types, how it affects your payroll schedule, and how to choose the right one for your business, all in compliance with IRS guidelines.

Semi-monthly payroll might not be the best choice if…

This guide covers the most common types, how cutoff dates work, and how to pick the best option for your business in 2025. According to the Fair Labor Standards Act (FLSA), non-exempt employees must be paid time and a half for hours worked over 40 https://www.ditullio-and-sons.com/2022/02/24/massage-business-software-uk-massage-therapy/ in a work week, i.e., 1.5 times the employer’s regular hourly rate. Non-exempt employees refer to salaried or hourly employees who earn less than $455.00 per week. Crack the code to read your pay stub and never worry about when — or for which days — you’re getting paid again. By carefully considering these factors, you can choose a pay period that supports your business’s financial health, keeps your payroll process efficient, and meets the needs of your employees.

• Typically, if either date falls on a weekend or holiday, we receive our pay on the preceding Friday.
• Planning and reviewing your finances are important for a healthy financial life.
• This schedule is influenced by the tax withholding requirements set by government agencies, and it helps employers stay compliant with tax regulations.
• Effective within the 2015–16 fiscal year, Western Michigan University will implement a separate semimonthly pay cycle for salaried employees.
• From contractors to full-time employees, Playroll handles every payment with precision.
• A newer option is a payday debit card, where an account is set up for the employee and all pay is deposited directly to that account.

What Is a Semimonthly Pay Schedule?

2nd, paying on the 15th and last day of the month means that they day I need to submit payroll is always changing. Which isn’t the end of the world, but I have to mark my calendar to make sure I don’t miss it, especially when payday falls on a weekend. For example, let’s say you run a restaurant and you have an employee that works 44 hours in a typical workweek. From the table above, you can see that some months have five pay dates, while others have only four. This variation occurs because of the way the days of the week fall in different months. This article will explore the per pay period meaning, different pay periods, and what to consider when choosing a pay schedule.

How to Calculate Pay Periods for Payroll

You could file a complaint with the Department of Labor, which you can find at the nearest unemployment office. Determine your payroll deadlines and cutoff dates, and make this policy clear to your employees, staff and any relevant external third-party payroll providers and partners. Each state has its own requirements when it comes to pay periods.

However, it can be trickier to calculate overtime for hourly pay period 5th and 20th employees, as the pay periods don’t always align neatly with the calendar weeks. March offers two more opportunities to manage your money effectively. With springtime arriving, it’s a great time to refresh your financial strategy.

Best Payroll for Hourly Teams

With the help of the semi-monthly pay period calendar, you can easily stay on track with your budget. The regular income stream helps you to avoid financial stress, and promotes financial wellness. December is a perfect time to reflect on your financial progress. Insurance Accounting Identify your achievements and make plans for any necessary changes.

Monthly Pay Example:

• Pay periods refer to a recurring schedule that a new business creates in order to pay its employees, and are typically determined when a company sets up payroll.
• Work Schedules are due within 3 business days after the completion of the pay period for PTO and other tracking Pay Period.
• However, it may be more complex to administer if you have hourly employees, and your state may not even permit this pay schedule for non-exempt workers.
• The information that you provide is subject to MEL’s Privacy Policy.
• However, what the employer is doing in this case falls well within their rights.
• How you pay your employees is mostly up to you, but each method has benefits and risks.

At FormPros, we make it easy to grasp the basics with our intuitive paystub generator. Paystub frequency refers to how often employees receive paychecks and pay stubs, which affects everything from financial planning to bill alignment. Employers use it to schedule payments, while workers rely on it to track earnings and manage cash flow. From weekly to monthly schedules, each pay frequency has its own pros and cons. Below is a snapshot table of the most commonly used paystub frequencies, along with clear explanations to help you decide which one works best for your needs. In a monthly pay schedule, employees receive one paycheck per month, which is issued on the same date every month (usually the first or last day of the month).