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In the US, the amount of pay periods depends on both your payroll schedule and individual state laws. Employees are typically paid weekly, bi-weekly, semi-monthly, or monthly, with some years having 27 biweekly pay periods due to the way calendar dates fall.
But why is this important to understand? And what impact does it have on your business, your budget, and your people?
In this article, we’ll break down how pay periods function in the US, the key differences between payroll schedules, and how to choose the best option for your business.
A pay period is the recurring schedule on which your employees receive their wages. It defines the length of time covered by a paycheck and determines how frequently your people are paid.
The pay period affects not just paycheck timing but also payroll processing, taxes, and benefits calculations.
In the US, the most common pay period frequencies are:
Under a weekly pay period, employees are paid at the end of every week. This approach is typically common in industries like construction, retail, and food service, especially for hourly employees.
This approach can make budgeting easier as your employees receive pay more frequently, although it may result in higher payroll processing costs.
Under a bi-weekly pay period, employees are paid every two weeks (usually on a set weekday). This approach is standard in industries like healthcare, tech, and corporate environments.
There are fewer payroll runs compared to a weekly pay period, but it is still frequent enough for employees. Note, though, that leap years add an extra day to the calendar, which can sometimes lead to 27 pay periods instead of 26. As a result, you may need to adjust your calculations during those years.
No. The annual salary remains the same regardless of pay frequency; it’s just divided into more (or fewer) paychecks.
Semi-monthly pay periods are slightly similar in frequency to bi-weekly periods, but there are less payroll runs. Instead, employees are paid twice per month (e.g., the 1st and 15th, or the 15th and the last day). This approach is common among salaried employees in white-collar industries.
This approach is easier for calculating benefits (since most benefits are monthly-based), although paydays can fall on weekends or holidays, requiring adjustments.
Top tip: Bi-weekly payroll is better for hourly workers as it aligns with timesheets. Semi-monthly payroll is more predictable for salaried employees but may require adjustments when paydays fall on weekends.
Under this approach, employees simply receive one paycheck per month. This is most common for high-level executives and contract workers (and is also common outside of the US).
It significantly simplifies payroll administration and there are less payroll runs, although you must budget carefully due to infrequent paychecks.
When a scheduled payday falls on a weekend or a federal holiday, employers must adjust their payroll processing to ensure employees receive their wages on time. Typically, businesses handle this in one of two ways:
Early payment: Many employers process payroll one business day earlier to ensure employees receive their pay before the weekend or holiday. For example, if a bi-weekly payday falls on a Saturday, employees might get paid on Friday instead.
Delayed payment: In some cases — usually when using direct deposits with strict bank processing timelines — payroll may be pushed to the next business day after the weekend or holiday. This is more common in industries where payroll cycles are automated and adjustments are difficult to make last-minute.
For your employees, an early payday can be beneficial for budgeting, while a delayed payday may cause inconvenience. Ensure that you clearly communicate any potential payroll adjustments to your people to help prevent confusion and ensure their financial stability.
There is no federal law that mandates a set minimum pay frequency, but most states have their own pay frequency laws that you must adhere to.
For example, in Connecticut, all employees must be paid weekly (unless approved otherwise by the labor commissioner). In Massachusetts, hourly employees must be paid weekly or bi-weekly, but salaried employees can be paid semi-monthly (or monthly, if the employee agrees). To see a full breakdown of pay frequency requirements by state, check out our free US State Explorer tool:
In some cases, these laws can also vary based on your employee’s role, their level of seniority, or the industry your business is in.
If you have employees in multiple states, this can quickly become confusing — especially if the pay frequency laws are different. As a result, it’s recommended to work with a cross-state payroll provider — like Remote Payroll — that can handle all of this for you. We ensure that your people are being paid the correct amount at the right time, saving you time and resources, and avoiding potential fines and penalties.
There’s no universal best option when establishing a pay schedule; instead, the right choice depends on several key factors, as follows:
Before anything else, you must adhere to the relevant regulations where your employees are based. Note that, in some states, pay frequency regulations can potentially be “negotiated” if both your employee and the state’s labor commissioner agree. In states where there are no such laws (i.e., Alabama and Florida), you must agree to a reasonable minimum pay frequency with your employees.
Some industries have standard pay schedules. For example, retail, hospitality, and construction often use weekly pay to support hourly workers, while tech, finance, and corporate sectors typically opt for bi-weekly or semi-monthly pay for easier salary administration.
If your business has a tight cash flow, you may find monthly or semi-monthly pay schedules easier to manage since they reduce the frequency of outgoing payments. In contrast, if you have a strong, predictable cash flow, you may prefer bi-weekly or weekly payments to keep employees happy.
Pay frequency can significantly impact employee satisfaction and financial stability. Hourly workers often prefer weekly or bi-weekly paychecks to match their immediate expenses, whereas salaried employees may find semi-monthly or monthly pay more predictable. Offering a preferred pay schedule can help attract and retain top talent.
Payroll frequency also affects how overtime pay, deductions, and benefits contributions are calculated. For example, bi-weekly schedules may require more overtime tracking than semi-monthly pay, which aligns more neatly with monthly benefit calculations.
Whichever approach you choose, it’s advisable to:
Be consistent. Once you choose a pay schedule, avoid making frequent changes, as this can cause confusion and financial stress for employees.
Communicate clearly. Ensure your employees understand their payroll cycle, including when and how they will be paid.
Use payroll software. Outsourcing your payroll to an automated provider helps reduce administrative errors and ensures compliance with tax laws and reporting requirements.
Plan for exceptions. Be prepared for leap years, holiday payroll adjustments, and any unexpected changes in payroll timing.
To learn more about how Remote Payroll removes your compliance headaches and makes the entire payroll process quick and painless, speak to one of our friendly experts today.
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