Biweekly payment
What is biweekly payment?
Biweekly payment refers to a payroll schedule where employees are paid once every two weeks, resulting in 26 pay checks per year (instead of 12 from monthly pay or 24 from semi-monthly pay). When payday falls every other Friday, employees may receive three pay checks in a single month.
How does biweekly payment work?
In a biweekly payment schedule, the employer sets a fixed pay date every two weeks, usually on the same day. This cycle continues throughout the year, regardless of how many days are in each month. Hourly employees are typically paid for the exact hours worked in each two-week period, while salaried employees receive a fixed amount per cycle.
How is biweekly payment calculated?
Hourly workers are paid based on the number of hours worked. To calculate biweekly pay, multiply the hourly wage by the total hours worked in two weeks.
Biweekly pay = (Hourly rate x total number of hours worked) x 2
Hourly rate: 400
Hours worked per week: 35 hours
35 x 2 = 70 hours
Biweekly pay = 400 x 70 = 28,000
Does biweekly pay get taxed more?
No, the tax rate doesn’t change just because the pay is biweekly. However, since pay checks are smaller than a monthly salary, the tax per pay check may seem less, but over the year, the total tax amount remains the same.
What are the benefits of biweekly pay?
Frequent pay days:
Employees don’t have to wait a whole month for their income.
Easier budgeting:
Regular, smaller payments help manage expenses.
Overtime accuracy:
Hourly employees’ overtime is calculated every two weeks.
Which industries use biweekly pay?
Biweekly pay is mostly common where employees work varied shifts on hour-based schedules. This includes industries like retail and hospitality, manufacturing and production, customer service and call centers, healthcare, and construction and trade work.