Differences Between Semimonthly and Biweekly Payroll

Differences Between Semimonthly Payroll and Biweekly Payroll

Differences between Semimonthly Payroll and Biweekly Payroll are explained below table,

Semimonthly Payroll	Biweekly Payroll
Semi-monthly payroll pays the employees twice a month.	Biweekly payroll payment happens every other week on an agreed day.
The pay period of semimonthly payroll is 24 times per year (12 months per year X 2 paydays per month = 24 paydays).	Biweekly pay contains 26 pay periods per year (Every calendar year has 52 weeks, hence 52/2 = 26).
If the employee’s annual salary is $96,000, the employee will get $3,250 ($78,000 / 24) on each payday.	If the employee’s annual salary of $96,000, the employee will get $3,000 ($78,000 / 26) on each payday.
Semimonthly payroll payment happens on the 15th and last day of the month.	In a Biweekly payroll, the most common payday is Friday (or else the employer can choose a specific day).
According to the U.S. Bureau of Labor Statistics, the Semimonthly payroll is the 3rd most popular payroll in the USA with an estimated 19% of U.S. private establishments paying their employees.	According to the U.S. Bureau of Labor Statistics, biweekly payroll is the most popular in the USA with an estimated 43% of U.S. private establishments paying their employees.
Employees can manage their monthly expenses a bit easier on semi-monthly payroll because there are two payments received per month on the designated paydays.	Employees can very easily budget with biweekly payroll because the paydays are more consistent which are paid on a specific day every other week.
Semimonthly payroll is a bit difficult to administrate an employee time entry verification perspective because it is not with a set duration. The pay period can start/end within any day of a week.	Biweekly payroll is easier to administrate and process. Employee time entry verification is easy because it is with a set duration of two weeks. The company does the payroll processing every two weeks instead of one, which makes this more efficient.

_{Semimonthly Payroll vs Biweekly Payroll}

Differences between Semimonthly Payroll and Biweekly Payroll are explained in the below points,

1. Semi-monthly payroll pays the employees twice a month.
But in Biweekly payroll payment happens every other week on an agreed day.

2. The pay period of semimonthly payroll is 24 times per year (12 months per year X 2 paydays per month = 24 paydays).
But Biweekly pay contains 26 pay periods per year (Every calendar year has 52 weeks, hence 52/2 = 26).

3. In a semimonthly payroll, if the employee’s annual salary is $96,000, the employee will get $3,250 ($78,000 / 24) on each payday.
In a biweekly payroll, if the employee’s annual salary of $96,000, the employee will get $3,000 ($78,000 / 26) on each payday.

4. Semimonthly payroll payment happens on the 15th and last day of the month.
But in Biweekly payroll, the most common payday is Friday (or else the employer can choose a specific day).

5. According to the U.S. Bureau of Labor Statistics, the Semimonthly payroll is the 3rd most popular payroll in the USA with an estimated 19% of U.S. private establishments paying their employees.
According to the U.S. Bureau of Labor Statistics, biweekly payroll is the most popular in the USA with an estimated 43% of U.S. private establishments paying their employees.

6. Employees can manage their monthly expenses a bit easier on semi-monthly payroll because there are two payments received per month on the designated paydays.
But employees can very easily budget with biweekly payroll because the paydays are more consistent which are paid on a specific day every other week.

7. Semimonthly payroll is a bit difficult to administrate an employee time entry verification perspective because it is not with a set duration. The pay period can start/end within any day of a week.
Biweekly payroll is easier to administrate and process. Employee time entry verification is easy because it is with a set duration of two weeks. The company does the payroll processing every two weeks instead of one, which makes this more efficient.

Definition of Semimonthly Payroll

Semi-monthly payroll is when a business pays the employees twice a month. Usually, the semimonthly payroll payment happens on the 15th and last day of the month. The payment generally happens out on the proceeding Friday if these dates fall on a weekend.

Please refer to the below article to understand more about Semimonthly Payroll,

What is Semimonthly Payroll? Explanation with Examples

Definition of Biweekly 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.

Please refer to the below article to understand more about Biweekly Payroll,