If you’re a small business owner, there’s a good chance you’ll have to choose between biweekly and semimonthly payroll. But what’s the difference? And which is better for your business? Here’s a look at the differences between biweekly and semimonthly payroll, so you can make the best decision for your company.
What is a semimonthly pay schedule?
A semimonthly pay schedule means that employees are paid twice a month, on the 1st and 15th (or the 16th, if the 15th falls on a weekend or holiday). This is the most common pay schedule for salaried employees.
Semimonthly Pay Example
|Pay Date||Dates Worked|
|January 1st||December 16th – 31st|
|January 15th||January 1st – 15th|
What is a biweekly pay schedule?
A biweekly pay schedule means that employees are paid every other week, for a total of 26 pay periods per year. This is the most common pay schedule for hourly employees.
So, what’s the difference between biweekly and semimonthly payroll? The biggest difference is in the frequency of paychecks. With biweekly payroll, employees receive two paychecks each month, while with semimonthly payroll, they receive one paycheck every two weeks.
Another difference is in the timing of paychecks. With biweekly payroll, employees are typically paid on Fridays, while with semimonthly payroll, they are paid on the 1st and 15th (or 16th) of each month.
2022 Biweekly Pay Schedule
|Number||Pay Period||Pay Date|
|1||12/12/21 – 12/25/21||January 7, 2022|
|2||12/26/21 – 1/8/22||January 21, 2022|
|3||1/9/22 – 1/22/22||February 4, 2022|
|4||1/23/22 – 2/5/22||February 18, 2022|
|5||2/6/22 – 2/19/22||March 4, 2022|
|6||2/20/22 – 3/5/22||March 18, 2022|
|7||3/6/22 – 3/19/22||April 1, 2022|
|8||3/20/22 – 4/2/22||April 15, 2022|
|9||4/3/22 – 4/16/22||April 29, 2022|
|10||4/17/22 – 4/30/22||May 13, 2022|
|11||5/1/22 – 5/14/22||May 27, 2022|
|12||5/15/22 – 5/28/22||June 10, 2022|
|13||5/29/22 – 6/11/22||June 24, 2022|
|14||6/12/22 – 6/25/22||July 8, 2022|
|15||6/26/22 – 7/9/22||July 22, 2022|
|16||7/10/22 – 7/23/22||August 5, 2022|
|17||7/24/22 – 8/6/22||August 19, 2022|
|18||8/7/22 – 8/20/22||August 30, 2022|
|19||8/21/22 – 9/3/22||September 16, 2022|
|20||9/4/22 – 9/17/22||September 30, 2022|
|21||9/18/22 – 10/1/22||October 14, 2022|
|22||10/2/22 – 10/15/22||October 28, 2022|
|23||10/16/22 – 10/29/22||November 10, 2022|
|24||10/30/22 – 11/12/22||November 23, 2022|
|25||11/13/22 – 11/26/22||December 9, 2022|
|26||11/27/22 – 12/10/22||December 22, 2022|
What is the difference between semi-monthly pay and bi-weekly pay?
The main difference between semimonthly pay and biweekly pay is the frequency of paychecks. Semimonthly payroll means that employees are paid twice a month, while biweekly payroll means that employees are paid every other week. Another difference is in the timing of paychecks. With semimonthly payroll, employees are typically paid on the 1st and 15th of each month, while with biweekly payroll, they are paid on Fridays.
So, which is better for your business? That depends on a number of factors, including your business size, type of employees, and your own preferences. If you’re not sure which is best for your business, talk to your accountant or payroll provider. They can help you make the best decision for your company.
Advantages of semimonthly pay
There are a few advantages of semi monthly pay schedule for businesses. First, it can simplify your payroll process and is the most cost-effective since there is a fewer number of paychecks to send out than bi- weekly payroll schedule. If you have employees who are paid hourly, you’ll only have to track their hours and calculate their pay once every two weeks. This can save you time and reduce the risk of mistakes. Also, it is somewhat easier to calculate salaries and wages, since there is less need for month-end adjusting entries.
Second, semimonthly pay can help you stay compliant with labor laws. If you have employees who work overtime, you’ll need to track their hours and make sure they’re paid the correct overtime rate. With semimonthly pay, you can do this once every two weeks, rather than once a week. This can help you avoid mistakes and potential penalties.
Advantages of biweekly pay
There are also a few advantages of biweekly pay for businesses. First, it can align your employees’ paychecks with their work schedule. If your employees work Monday through Friday, they’ll likely prefer payday to be on Fridays. This way, they’ll have the weekend to spend their hard-earned money.
Second, biweekly pay can help you save on payroll costs. If you have hourly employees, you’ll only have to process their hours and calculate their pay once every two weeks. This can save you time and money on payroll processing fees.
Last, employees are paid more often when they are on a biweekly pay schedule as they will receive two extra paychecks each year when compared to a semi-monthly schedule. Employees also know the specific dates they will be getting paid, so they can plan for their living expenses better.
Preferred industry pay schedules
Now that you know the difference between biweekly and semimonthly payroll, you may be wondering which is preferred in your industry. Here’s a look at the most common pay schedules by industry:
|Industry||Most Common Pay Schedule|
|Banking and Finance||Semimonthly|
|Accounting and Legal||Semimonthly|
As you can see, the most common pay schedule varies by industry. In general, biweekly pay is more common for hourly employees, while semimonthly pay is more common for salaried employees.
When it comes to your business, there’s no right or wrong answer when it comes to choosing between biweekly and semimonthly payroll. The best solution is the one that works best for your company and your employees. Talk to your accountant or payroll provider to see which option is best for you.