The difference between semimonthly and biweekly payroll

semimonthly vs biweekly

Most of the time, these terms are interchangeable, but not always. Sign up for a demo of Tapcheck to learn how it can revolutionize your paycheck system. Opinions expressed on the pages of this website belong to the author and do not represent the views of companies whose products and services are being reviewed. These mobile technologies can help with data collection so you can analyze user behavior and improve your payroll going forward.

As you can see, both payroll options come with their own pros and cons, which makes them suitable for different scenarios. That said, as a general rule of thumb, the semimonthly system is better semi monthly vs bi weekly for employers, whereas the biweekly one suits employees more. From an efficiency perspective, the semimonthly payroll is preferable, since there are two fewer payrolls per year to prepare.

Aspect Comparison: Bi-Weekly vs Semi-Monthly Payroll

For instance, in the month of February, the second paycheck would cover only 13 or 14 days when in the rest of the months, it covers 15 or 16 days. Depending on whether you are a salaried, permanent employee, the total yearly salary may be divided into 24 checks by the employer. With a semi-monthly pay schedule, you’ll pay employees on two set dates a month. Biweekly payroll is ideal if you have a combination of salaried workers and hourly employees because it works well for both. It’s the sweet spot between the constant administrative stress of weekly payroll and the employee frustration that comes with monthly payments. Before choosing, keep in mind that states regulate how often you must pay employees.

  • The trade-off is the fact that when you’re paid varies continuously.
  • There are a lot of differences between semi-monthly pay and biweekly pay and deciding which is better biweekly or semi-monthly pay, is slightly challenging.
  • It’s beneficial to understand the difference between a semimonthly and a biweekly payment plan.
  • After knowing the differences between semi-monthly vs bi-monthly payroll cycles, businesses and employers can make a choice between the two.

Biweekly payment schemes work better with hourly employees with unpredictable work hours and additional obligations, as biweekly pay never splits overtime hours. Typically, some of the fields that favor biweekly pay are information, professional and business services, education, health services, leisure, and hospitality. Naturally, a salaried paycheck will be less on average each biweekly payday, but each schedule’s totals will remain the same over the course of the year. The main difference will be how often you receive your paycheck.

Our Recommendation Between Semi-Monthly vs Bi-Weekly Payroll

While biweekly may sound like it means twice per week, the correct term for that would be semiweekly. The prefix “bi” means two, so it’s a one-word way of saying two weeks. The issue with semimonthly pay is that it can get a bit complicated for hourly workers. As the number of days https://www.bookstime.com/articles/how-to-invoice-as-a-freelancer in a month varies, how much pay you get will also change. The number of days in the last half of the month will usually either be 15 or 16. According to the Bureau of Labor Statistics, 43% of businesses in the U.S. use a bi-weekly pay schedule, while 19.8% use semi-monthly payroll.

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