What Is Semi-Monthly Payroll? How It Differs From Bi-Weekly

This schedule strikes a balance between weekly and semi-monthly pay, providing regularity while still minimizing the administrative burden compared to weekly pay. Payroll processing for biweekly salaried employees differs from processing for semimonthly salaried employees. Full-time biweekly salaried employees are generally paid 80 hours each payday while semimonthly employees receive 86.67 hours. Specifically, full-time salaried employees are compensated for 2,080 work hours yearly.

This software will automate calculations, ensuring accurate paychecks every time. It will handle tax withholdings, benefit deductions, and overtime calculations, reducing the risk of errors. Payroll software also simplifies record-keeping and compliance with state regulations. By automating these tasks, you save time and reduce the administrative burden on your team.

By automating the process, you can ensure that each of the 24 pay periods in a year is accounted for accurately. Additionally, any changes to the pay structure should be communicated well in advance. This allows employees to adjust their budgeting and financial planning accordingly. Depending on the month, payday may happen on a Saturday, Sunday or holiday. 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.

Disadvantages of Semi-Monthly Pay

• With a passion for helping small business owners succeed, the company has evolved and grown over several decades.
• Calculating pay in a semi-monthly schedule is relatively straightforward, yet it requires careful attention to detail, especially for hourly employees.
• As an employer, adopting a biweekly pay schedule could offer several advantages.
• Knowing the differences between the two payroll schedules is crucial because they can have a big impact on your financial planning, overtime calculation, and payroll management.
• Typically, a biweekly payroll occurs on a specific day (e.g., every other Friday).

Biweekly paychecks will be less money, but you will provide the two additional paychecks to make up the difference. With the evolution of digital tools, you can now easily check my online paystub if you are on a semi-monthly pay schedule. If your employer utilizes our services, they will provide a secure log-in for you to check your paystub. This provides a quick, efficient way to verify your salary details, deductions, and net pay for the half-month period. Remember, it’s crucial to regularly check and understand your paystub to track and manage your finances effectively.

Let’s first look at the unique attributes and benefits of the biweekly pay schedule. Homebase makes managing hourly work easier for over 100,000 local businesses. Check out our shift schedule template, employee schedule template, schedule planner, and weekly schedule template. Homebase works great for all hourly teams, including restaurants, retail, healthcare, home and repair, and professional services businesses. Verify that your state allows this pay structure and comply with any specific requirements.

Top-rated app built for small business teams.

According to US Bureau of Labor Statistics, the semi-monthly pay period is the third most common pay period in the US behind weekly and bi-weekly pay periods respectively. On the other hand, industries with a strong emphasis on project-based work, like consulting or freelancing, often favor bi-weekly pay. The flexibility in payday dates accommodates the irregular nature of project timelines, providing a more adaptable approach to compensation. Bi-weekly pay spans a range of dates, accommodating variations in the number of workdays per month. This dynamic schedule can make budgeting a bit more challenging than the predictability of semi-monthly pay. Each semi-monthly pay period covers half a month’s work, typically spanning from the 1st to the 15th and the 16th to the end of the month.

Pay frequency determines how often the business must process payroll and when employees receive their paychecks. There are four common pay period options, including weekly, biweekly, semimonthly, and monthly. Two popular, yet easily confused, pay periods are biweekly and semimonthly. Knowing the difference between biweekly vs. semimonthly payroll can prevent financial setbacks, keep the business legally compliant, and more. Semi-monthly pay offers a structured approach that benefits both employers and employees alike. For employers, adopting a semi-monthly schedule can streamline payroll processes, enhance cash flow management, and improve employee satisfaction.

Semi Monthly Pay Period Saves Companies Money

The frequency of pay can impact expectations and job satisfaction for employees. Generally, employees favor more frequent pay periods for a steady income flow, which aids in financial planning and budgeting. There are some important differences when it comes to semi-monthly vs. biweekly payroll.

If you have a mix of salaried and hourly employees, understand how this pay schedule impacts each group. Salaried employees benefit from predictable paychecks, making it easier for them to budget. Hourly employees might face more complex calculations, especially if pay periods split workweeks. When employees are paid semimonthly, salaried workers receive the same amount to employees each month.

This arrangement also offers a consistent routine, making it easier for employees to budget and plan expenses. Thankfully, regardless of the pay schedule you choose, tools exist that can help simplify payroll processing. Let’s explore how solutions like Paystubhero can make managing your payroll a breeze. These considerations serve to illustrate that while semimonthly pay has its benefits, it may not be the ideal choice for everyone.

Rachel Blakely-Gray is a writer for Patriot Software, a provider of payroll and what is semimonthly human resources management solutions for small businesses. The origin of FrankCrum dates back to 1981, when Frank W. Crum, Jr. and his father, Frank Crum, Sr., founded the Great American Temporary Service. With a passion for helping small business owners succeed, the company has evolved and grown over several decades.

CPA Practice Advisor has products that deliver powerful content to you in a variety of forms including online, email and social media. Switching to a semi-monthly payroll can feel like a big change, but with the right approach, it can be seamless. Using bi or semi in front of time periods can create tremendous confusion these days as definitions and style guidance continue to soften and blur. We will show you 25 ways to show proof of income, so you can move forward in your application process. If you have a staff meeting every other Wednesday, you will usually have two such meetings per month (i.e., semi-monthly). I will use each of these words in a few example sentences to demonstrate how they should appear in context.