Pay Period

A Pay Period is the recurring length of time for which an employee’s wages are calculated and paid. It determines how often employees receive their paychecks. Common pay periods include weekly, biweekly, semimonthly, and monthly schedules, depending on the employer’s payroll system and local labor regulations. The chosen pay period affects payroll processing timelines, tax withholdings, and employee budgeting.

Employers must clearly communicate pay period schedules to ensure transparency and avoid confusion regarding payment dates and earnings.

Key Facts

• Frequency: Common pay periods include weekly, biweekly (every two weeks), semimonthly (twice a month), and monthly.‍
• Compliance: Employers must follow federal and state laws regarding pay frequency.‍
• Payroll Impact: Determines how often deductions, taxes, and benefits are calculated.‍
• Work Hours: Tracks the number of hours worked within that period for hourly employees.‍
• Budgeting: Affects employee budgeting and employer payroll cycles.

1. What is the difference between biweekly and semimonthly pay periods?

Biweekly pay is every two weeks (26 paychecks/year), while semimonthly is twice a month (24 paychecks/year).

2. Who decides the length of a pay period?

Employers choose based on business needs, budget cycles, and legal requirements.

3. Do pay periods affect overtime calculations?

Yes, overtime is typically calculated based on a 7-day workweek within the pay period.

4. Can pay periods be changed?

Yes, but changes must follow labor laws and require proper employee notification.

5. Does the pay period determine when you get paid?

Yes, paychecks are issued after the end of the pay period, often with a processing delay of a few days.