Advantages and Disadvantages of Bi-Weekly Payroll

Biweekly payroll refers to the payroll payment that pays employees every other week on a decided day. The employees get paid every two weeks in bi-weekly pay. Every calendar year has 52 weeks, hence there are 26 payments applicable for bi-weekly payroll (52/2 = 26).

  1. Advantages of Biweekly Payroll – For Employers and Employees Separately
  2. Disadvantages of Biweekly Payroll – For Employers and Employees Separately
  3. Definition of Bi-Weekly Payroll
  4. Pay Period & Pay Days of Bi-Weekly Payroll
  5. How to Calculate Bi-Weekly Payroll with Examples
  6. What are the Other Types of Payroll Schedules (Methods) Available
  7. Difference Between Bi-Weekly, Semi-Monthly, and Bi-Monthly Payroll Schedules
  8. Best Practices for Managing Payroll Periods
  9. Which Industries uses the Bi-Weekly Payroll?
  10. Frequently Asked Questions (FAQs)
  11. Bi-Weekly Payroll Calendar for 2024, 2025, & 2026 Years

The following are the Advantages and Disadvantages of the Biweekly Payroll, in the perspective of employers and employees separately.

Advantages (Pros / Positives / Benefits) of Biweekly Payroll

Advantages for Employees

1. Employees Feel More Consistent

A bi-weekly pay schedule pays employees every two-week basis. Employees will know the payment will happen on the same day (e.x. Friday) every other week. This is pretty much consistent for the employees when compared with semi-monthly payment, which payment happens every month but the date will be different.

Employees can better consider how much they need to spend on routine household expenses like groceries, food, and gas for the coming two weeks. Bi-weekly payroll will help the employees to plan and manage the expenses & savings for the next two weeks easily.

2. Employees will Receive More Paychecks

The employees get a paycheck every two weeks basis in bi-weekly pay. Every calendar year has 52 weeks, hence there are 26 paychecks received for an employee on each year in bi-weekly payroll (52/2 = 26).

But in semi-monthly pay, the number of paychecks received is 24 (there are two payments applicable in each month, hence 2 x 12 = 24).

The employee will receive more paychecks in bi-weekly payments, even though the yearly total amount is the same. The employee will feel comfortable planning the expenses and saving money using the additional two paychecks received.

Employees can plan and avoid late charges with the more paychecks received.

3. Good Overtime Limit Coverage

For employers using the biweekly pay period, the overtime limits per pay period would cover both weeks instead of just one. This is another advantage for employees who can plan and cover more overtime.

Advantages for Employers

4. Easy Overtime Payment Calculation

In biweekly payroll, employee time entry verification for overtime calculation is easy because it is with a set duration of two weeks. When compared with the semi-monthly payroll which the time entry verification happens in the mid of the week (without a set duration), it is quite easy with biweekly payroll to handle the overtime payment-related calculation.

As an example, if semi-monthly payroll is used and employee overtime hours fall between two different pay periods, the company should make adjustments that are complex to manage.

5. Increase in Payroll Processing Efficiency

The company does the payroll processing every two weeks instead of one, which makes this more efficient. The HR department does the payroll processing steps consistently on the same day of each week. It is easier to plan and manage the administration work as a routine.

Disadvantages (Cons / Negatives / Drawbacks) of Biweekly Payroll

Disadvantages for Employees

1. Paycheck will be Comparatively Less

When compared with bi-weekly payroll, the value of the individual payment will be less. Employees receive two extra paychecks per year (26 – 24) as an opposite for this.

As an example, if the employee’s annual total payment is $78,000 then,

  • If the employee receives the payment via a bi-weekly method he/she will receive $3,000 per paycheck ($78,000 / 26 pay periods).
  • If the employee receives the payment via a semi-monthly method he/she will receive $3,250 per paycheck ($78,000 / 24 pay periods).

2. Difficulty in Personal Budgeting

Some people are used to monthly budgeting like getting the monthly salary and dividing that by month-based payments like rental, utilities, gas, etc. In these cases, such employees may feel difficulties in personal budgeting when bi-weekly payment is there.

3. Promotes More Spending for Employees

Bi-weekly payments could encourage more spending for certain employees. As an example, the employee will feel that they will get the next payment in two weeks, hence rather than planning to save, the mindset could shift to spend more. This means the employee gets the payment on more frequent occasions hence unable to plan the savings properly.

Disadvantages for Employers

4. Complicated Cash Forecasting for Companies

In bi-weekly payroll, there are 26 pay periods in a year. This means there will be two months which has three pay periods. The company will be in a much more difficult situation to forecast the monthly cash flow to pay three times in a given month. Extra effort will be needed to plan exceptional situations like this.

5. Difficultly in Monthly Company Budgeting Process

There will be two extra paychecks on a given two months per year when using bi-weekly pay. The company finance department will be in a difficult situation with budgeting since there will be three paychecks given in two months per year. The company should verify in advance whether adequate money is there is planned properly to avoid any last-minute hassle.

6. High Expenses in Payroll Run Administration

Whether the company is administrating the payroll in-house or outsourcing, the bi-weekly payment will incur additional expenses in the payroll run, since there are two additional pay periods in bi-weekly pay. This will result in higher annual payroll management expenses for companies that use biweekly pay frequency.

7. Additional Paper Work Requirement

When compared with semi-monthly pay, there is additional paperwork required for bi-weekly pay since there are more payrolls to be run per year.

Definition of Bi-Weekly Payroll

Biweekly payroll is when employees receive their pay every other week on an agreed day. There are 26 payments applicable for bi-weekly payroll, usually twice a month.

The entire year will be split into 26 separate pay periods in a biweekly schedule. Hence the employees get paid every two weeks instead of every week. In some months, the employees will get paid three times in one month with the payment schedule. There are always two months each year in which three paychecks are distributed and the other 10 months have two paychecks distributed.

Biweekly pay is the common pay period that many employers use in the USA and other countries.

Pay Period & Pay Days of Bi-Weekly Payroll

Biweekly pay is when an employer pays the employees every other week on a specific day of the week. Biweekly pay contains 26 pay periods per year (Every calendar year has 52 weeks, hence 52/2 = 26).

An employer chooses a specific day to pay employees in a biweekly schedule. The most common payday is Friday.

How to Calculate Bi-Weekly Payroll with Examples

As an example, let’s assume that an employee joined at an annual salary of $78,000. There are 26 pay periods of biweekly payroll. Hence for each pay, the employee will get $3,000 ($78,000 / 26). The employee’s paysheet will indicate the gross salary of $3,000 on each bi-weekly payday.

  • For 10 months in the year, the employee will get $6,000 each month (2 Pay Days per month hence $3,000 X 2 = $6,000).
  • For 2 months in the year, the employee will get $9,000 each month (3 Pay Days per month hence $3,000 X 3 = $9,000).

For hourly employees, the amount they get per pay period varies with the number of hours worked and overtime calculation.

  1. Pay Periods: In a biweekly payroll system, there are 26 pay periods in a year, as there are 52 weeks in a year divided by 2.
  2. Payroll Processing: Employers typically establish a payroll schedule, specifying the pay period start and end dates, as well as the payday. For example, if the pay period starts on a Monday and ends on a Sunday, payday might be the following Friday.
  3. Hours Worked: Throughout the pay period (two weeks), employees track their hours worked. This tracking could happen through manual time-sheets or electronic time-tracking systems.
  4. Calculating Wages: The employer calculates each employee’s wages based on their hourly rate or salary at the end of each pay period, while considering any overtime hours worked as applicable.
  5. Deductions: Various deductions are then subtracted from the gross pay, including taxes, insurance premiums, retirement contributions, and any other withholding required by law or agreed upon with the employee.
  6. Net Pay: The resulting amount after deductions is the employee’s net pay. This is the amount they will receive in their paycheck.
  7. Payment Distribution: Employees may receive their pay through direct deposit into their bank accounts, physical checks, or electronic pay cards, depending on the employer’s payment method.
  8. Taxes and Withholding: Employers are responsible for withholding federal, state, and local income taxes from employees’ paychecks, as well as Social Security and Medicare taxes. The amount withheld depends on various factors such as the employee’s filing status, allowances claimed, and any additional withholding requested by the employee.
  9. Record Keeping and Reporting: Employers must maintain accurate records of each pay period, including hours worked, wages paid, and deductions made. They also need to file payroll tax returns and provide employees with pay stubs detailing earnings and deductions.

What are the Other Types of Payroll Schedules (Methods) Available

1. Bi-Monthly Payroll Schedule

Difference Between Bi-Weekly, Semi-Monthly, and Bi-Monthly Payroll Schedules

Biweekly PayrollSemimonthly PayrollBimonthly Payroll
Pay PeriodEvery Other WeekTwice A MonthOnce Every Two Months
Number of Payments Per Year262412
Number of Payments Per MonthFor 10 Months 2,
For 2 Months 3
2 Payments Per Month1 Payment Per 2 Months
Payment Usually Happens on a Specific Day of a WeekYesNoNo
Practical for Non-Exempt Employee PaymentYesNo / DifficultNo / Difficult
Payment Amount Per Pay Period As Example.
Assumption: Annual Salary of $78,000
$78,000 / 26 = $3,000$78,000 / 24 = $3,250$78,000 / 12 = $6,500
Best Advantage As an EmployeeEmployees Feel More ConsistentPayment Method is Easy to UnderstandPaycheck Amount will be Comparatively High
Biggest Disadvantage As an EmployeePaycheck will be Comparatively LessNot Practical with Non-Exempt EmployeesDifficulty in Personal Budgeting
Biweekly vs Semimonthly vs Bimonthly Payroll

Best Practices for Managing Payroll Periods

  1. Consistency: You should maintain a regular and consistent payroll schedule to provide predictability for employees.
  2. Compliance: You have to ensure compliance with federal, state, and local laws regarding pay frequency, overtime pay, and tax withholding.
  3. Accurate Record-Keeping: You have to maintain accurate records of hours worked, wages paid, and deductions to facilitate payroll processing.
  4. Communication: You should clearly communicate payroll schedules, pay rates, deductions, and any changes to employees in advance to avoid confusion and ensure transparency.
  5. Automation: It is great if you can utilize payroll software or systems to automate payroll processing, reduce errors, and increase efficiency.
  6. Review and Audit: You have to regularly review and audit payroll processes and records to identify and correct any errors or discrepancies promptly.
  7. Employee Self-Service: It is a good practice if you can provide employees with access to self-service tools or portals to view their pay stubs, update personal information, and access relevant payroll documents.
  8. Training and Education: You have to train payroll staff and managers on relevant laws, regulations, and best practices to ensure compliance and accuracy in payroll processing.
  9. Vendor Management: If you are outsourcing payroll, carefully select and manage payroll service providers to ensure reliability, security, and compliance with legal requirements.
  10. Feedback and Improvement: You can obtain solicit feedback from employees and stakeholders to identify areas for improvement in payroll processes and address any concerns or issues promptly.

Which Industries uses the Bi-Weekly Payroll?

Bi-Weekly Payroll Calendar for 2024, 2025, & 2026 Years

  • Bi-weekly pay schedule (payroll calendar) for the Year 2024 with Friday as the payday:
YearMonthPay DatePay DayConsidered Date Duration
2024January5FridayDecember 23, 2023 – January 5, 2024
2024January19FridayJanuary 6, 2024 – January 19, 2024
2024February2FridayJanuary 20, 2024 – February 2, 2024
2024February16FridayFebruary 3, 2024 – February 16, 2024
2024March1FridayFebruary 17, 2024 – March 1, 2024
2024March15FridayMarch 2, 2024 – March 15, 2024
2024March29FridayMarch 16, 2024 – March 29, 2024
2024April12FridayMarch 30, 2024 – April 12, 2024
2024April26FridayApril 13, 2024 – April 26, 2024
2024May10FridayApril 27, 2024 – May 10, 2024
2024May24FridayMay 11, 2024 – May 24, 2024
2024June7FridayMay 25, 2024 – June 7, 2024
2024June21FridayJune 8, 2024 – June 21, 2024
2024July5FridayJune 22, 2024 – July 5, 2024
2024July19FridayJuly 6, 2024 – July 19, 2024
2024August2FridayJuly 20, 2024 – August 2, 2024
2024August16FridayAugust 3, 2024 – August 16, 2024
2024August30FridayAugust 17, 2024 – August 30, 2024
2024September13FridayAugust 31, 2024 – September 13, 2024
2024September27FridaySeptember 14, 2024 – September 27, 2024
2024October11FridaySeptember 28, 2024 – October 11, 2024
2024October25FridayOctober 12, 2024 – October 25, 2024
2024November8FridayOctober 26, 2024 – November 8, 2024
2024November22FridayNovember 9, 2024 – November 22, 2024
2024December6FridayNovember 23, 2024 – December 6, 2024
2024December20FridayDecember 7, 2024 – December 20, 2024
2025January3FridayDecember 21, 2024 – January 3, 2025
2024 Bi-Weekly Payroll Calendar
  • Bi-weekly pay schedule (payroll calendar) for the Year 2025 with Friday as the payday:
YearMonthPay DatePay DayConsidered Date Duration
2025January3FridayDecember 21, 2024 – January 3, 2025
2025January17FridayJanuary 4, 2025 – January 17, 2025
2025January31FridayJanuary 18, 2025 – January 31, 2025
2025February14FridayFebruary 1, 2025 – February 14, 2025
2025February28FridayFebruary 15, 2025 – February 28, 2025
2025March14FridayMarch 1, 2025 – March 14, 2025
2025March28FridayMarch 15, 2025 – March 28, 2025
2025April11FridayMarch 29, 2025 – April 11, 2025
2025April25FridayApril 12, 2025 – April 25, 2025
2025May9FridayApril 26, 2025 – May 9, 2025
2025May23FridayMay 10, 2025 – May 23, 2025
2025June6FridayMay 24, 2025 – June 6, 2025
2025June20FridayJune 7, 2025 – June 20, 2025
2025July4FridayJune 21, 2025 – July 4, 2025
2025July18FridayJuly 5, 2025 – July 18, 2025
2025July31FridayJuly 19, 2025 – July 31, 2025
2025August15FridayAugust 1, 2025 – August 15, 2025
2025August29FridayAugust 16, 2025 – August 29, 2025
2025September12FridayAugust 30, 2025 – September 12, 2025
2025September26FridaySeptember 13, 2025 – September 26, 2025
2025October10FridaySeptember 27, 2025 – October 10, 2025
2025October24FridayOctober 11, 2025 – October 24, 2025
2025November7FridayOctober 25, 2025 – November 7, 2025
2025November21FridayNovember 8, 2025 – November 21, 2025
2025December5FridayNovember 22, 2025 – December 5, 2025
2025December19FridayDecember 6, 2025 – December 19, 2025
2025 Bi-Weekly Payroll Calendar
  • Bi-weekly pay schedule (payroll calendar) for the Year 2026 with Friday as the payday:
YearMonthPay DatePay DayConsidered Date Duration
2026January2FridayDecember 20, 2025 – January 2, 2026
2026January16FridayJanuary 3, 2026 – January 16, 2026
2026January30FridayJanuary 17, 2026 – January 30, 2026
2026February13FridayJanuary 31, 2026 – February 13, 2026
2026February27FridayFebruary 14, 2026 – February 27, 2026
2026March13FridayFebruary 28, 2026 – March 13, 2026
2026March27FridayMarch 14, 2026 – March 27, 2026
2026April10FridayMarch 28, 2026 – April 10, 2026
2026April24FridayApril 11, 2026 – April 24, 2026
2026May8FridayApril 25, 2026 – May 8, 2026
2026May22FridayMay 9, 2026 – May 22, 2026
2026June5FridayMay 23, 2026 – June 5, 2026
2026June19FridayJune 6, 2026 – June 19, 2026
2026July3FridayJune 20, 2026 – July 3, 2026
2026July17FridayJuly 4, 2026 – July 17, 2026
2026July31FridayJuly 18, 2026 – July 31, 2026
2026August14FridayAugust 1, 2026 – August 14, 2026
2026August28FridayAugust 15, 2026 – August 28, 2026
2026September11FridayAugust 29, 2026 – September 11, 2026
2026September25FridaySeptember 12, 2026 – September 25, 2026
2026October9FridaySeptember 26, 2026 – October 9, 2026
2026October23FridayOctober 10, 2026 – October 23, 2026
2026November6FridayOctober 24, 2026 – November 6, 2026
2026November20FridayNovember 7, 2026 – November 20, 2026
2026December4FridayNovember 21, 2026 – December 4, 2026
2026December18FridayDecember 5, 2026 – December 18, 2026
2026 Bi-Weekly Payroll Calendar

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