What is Bimonthly Payroll? Explanation with Examples
What is Bimonthly Payroll?
Bimonthly payroll means that the company pays its employees once every two months. Employees in bi-monthly pay receive a salary every two months (six times a year).
In many locations in the USA, Canada, and the world, the maximum payroll period allowed is a month. Hence, bi-monthly payroll is not very common in the world.
Pay Period & Pay Days of Bimonthly Payroll
Bimonthly pay is when an employer pays the employees once every two months. Bimonthly pay contains 6 pay periods per year (Every calendar year has 12 months, hence 12/2 = 6).
Pay day of Bimonthly Payroll is usually the last day of two months. For the November and December months, the payday usually is 31st December. But it can vary based on the company policies.
Example of Bimonthly Payroll
As an example, let’s assume that an employee joined at an annual salary of $60,000. There are 6 pay periods of bimonthly payroll. Hence for each pay, the employee will get $10,000 ($60,000 / 6). The employee’s paysheet will indicate the gross salary of $10,000 on each bi-monthly payday.
Generally, employees have to pay the same amount of taxes despite what payroll schedule the company follows.
Is it Beneficial for an Employee in Bimonthly Payroll?
The employee receives the paycheck once every two months. Hence, it is difficult for an employee to plan the expenses for two months at a stretch. But the paycheck is a large one since it contains two months’ payments. Hence compared with Semimonthly, Biweekly, or Monthly payroll, it is not beneficial for an employee to receive payment via Bimonthly Payroll.
Even though the paycheck is larger, the total amount received at the end of the year is the same despite the pay frequency.
Is it Beneficial for an Employer in Bimonthly Payroll?
When a company uses a Bimonthly payroll, it reduces the operational time spent on payroll processing since the payroll process happens once every two months. Payroll happens often which results in less work for the employer. Hence compared with Semimonthly, Biweekly, or Monthly payroll, it is beneficial for an Employer to choose Bimonthly Payroll.
- Bi-Monthly Payroll
- Bi-Weekly Payroll
- Semi-Monthly Payroll
- Differences of Payroll Methods