You also have to pay the same amount of taxes no matter what pay schedule you're following. Though these amounts differ, you end up receiving the same amount of money by the end of the year. If you get paid bimonthly or semimonthly, you'd receive approximately $1,667 in gross wages. If you get paid biweekly, you can divide $40,000 by 26 pay periods to get approximately $1,538 in gross wages every other week. To determine how much you get paid each pay period, you can divide your wages by the number of pay periods your employer offers. For example, let's say you make $40,000 per year. However, they ultimately get paid the same amount in a given year. The amount of money an employee receives per paycheck may fluctuate depending on their employer's pay schedule. Related: Should I Pay My Employees Semimonthly? How do wages differ with a biweekly or bimonthly pay schedule? For example, employees can get paid on the first day of the month and then again on the 15th of the month.
Typically, pay dates for this schedule are approximately 15 days apart.
In other words, you can get paid on a Friday and then a Wednesday. With this type of payroll, employees get paid on specific dates, which results in pay processing on different days of the week. Also known as a semimonthly pay period, a bimonthly pay period results in 24 pay periods per year. What is bimonthly pay?īimonthly pay typically refers to a pay schedule wherein employees get paychecks twice per month. It's also worth noting that the use of the most common pay period, in this case, biweekly pay, tends to rise with the size of an establishment. In comparison, 18.6% of private establishments run on a semimonthly or bimonthly pay period. private establishments run on a biweekly pay schedule. Related: What Is Biweekly Pay? Which pay schedule is more common?Īccording to the Bureau of Labor Statistics' 2019 data, 42.2% of U.S. While most months have two pay periods, two months of the year feature three pay periods. When businesses run on a biweekly pay schedule, they have 26 pay periods per year. Though most businesses pay their employees on Friday, the exact day varies by employer and their particular preferences or the nature of their business. Biweekly Pay Schedules: Understanding Key Differences What is biweekly pay?īiweekly pay periods refer to schedules wherein a business delivers checks to its employees on the same day every other week. In this article, we define biweekly pay, bimonthly pay and explain the pros and cons of both pay schedules. Understanding a biweekly pay schedule versus a bimonthly pay schedule, for example, can help you determine which provides you with the most benefits. Keep in mind that the approach that works for one business and its employees may not work for another. As a business owner, it's important to reconsider your approach regarding your pay schedule. Many businesses decide on a particular period that determines how often they pay their employees throughout the year.
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