Summary

• Biweekly and semi-monthly pay may sound similar, but they differ in structure, timing, and how they impact payroll processing.
• Several states have pay frequency laws that specify how often employers must pay their employees.
• Payroll software makes it easy to manage multiple pay frequencies, assign them by employee type, and automate overtime and pay period calculations.

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Biweekly and semi-monthly are standard popular pay frequency options. While they sound similar, they work very differently. Both involve employees receiving payment twice a month, most of the time, but the structure behind them can significantly impact payroll processing. 

So, which one is right for your team? Let’s break it down.

What is semi-monthly payroll?

Semi-monthly payroll means employees are paid twice a month on specific dates, typically the 15th and last day of the month or the 1st and 15th of each month. This results in 24 pay periods in a year. 

Unlike weekly or biweekly pay schedules, semi-monthly pay dates stay fixed by the date, not the day of the week. That means paydays fall on different weekdays each month and, in some cases, on weekends or holidays, potentially delaying direct deposits if not managed carefully. In many states, employers are still required to issue pay on or before the scheduled payday, even if banks are closed, to stay compliant with payday laws. 

What is biweekly payroll? 

Biweekly payroll means employees are paid every other week on the same specific day, such as the second Friday of each month. This leads to 26 pay periods per year, with two months each year containing three paychecks instead of two. 

Unlike semi-monthly payroll, biweekly follows the same weekday, not the same date, which provides more consistency for employees and simplifies time tracking. 

Biweekly pay is paying employees every other week on the same day (e.g., every other Friday), resulting in a total of 26 paychecks per year. Unlike semi-monthly pay, biweekly payroll means employees are paid on the same day every other week, not on a set date. 

Semi-monthly vs biweekly pay: Key differences

	Biweekly Pay	Semi-monthly Pay
Pay periods/year	26	24
Pay schedule	Fixed day, every two weeks (e.g., every Friday)	Fixed dates (e.g., every 15th and 30th)
Payroll taxes and withholdings	More frequent withholding	Slightly higher withholding amounts per paycheck
Direct deposits and bank timing	Always the same weekday	May fall on weekends/holidays
Payroll and HR Admin workload	More runs (26/year)	Fewer runs (24/year), but may need adjustments
Overtime tracking	Every 2 weeks, aligns with 40-hour weeks	May split workweeks

Which payroll schedule is better for hourly employees?

To know which is the better payroll schedule, you need to understand how each of them affects your payroll management, particularly overtime pay and shift differentials. You need to figure out which pay schedule makes it easy for you to manage. 

If you manage hourly workers, your choice of payroll frequency directly impacts how you track hours, calculate overtime, or account for shift differentials.

How pay frequency schedules affect payroll workflows for hourly teams

A bi-weekly payroll schedule aligns with a standard 40-hour workweek, which makes it easier to calculate overtime. Since each pay period covers exactly 14 days, it’s predictable and easier to reconcile against time and attendance records. 

Meanwhile, a semi-monthly pay schedule may cut across weeks. For example, a pay period might start on a Wednesday and end two Thursdays later, which can result in a single workweek being split between two pay periods. This can result in challenges with overtime calculations and increases the risks of errors, especially when you don’t have an airtight payroll system.

Other pay inputs: Tips, shift differentials, and bonuses

Consider other sources of compensation, too. Businesses relying on hourly teams, such as restaurants, hotels, retail, and healthcare, may have complex pay inputs such as:

• Shift differentials 
• Tip pooling 
• Bonuses and commissions

So, which should you choose?

Suppose you run a shift-based operation or manage hourly employees. In that case, bi-weekly payroll is usually the better choice because it’s easier to calculate overtime under FLSA rules and align with weekly timesheets. That said, syncing hours with pay has fewer risks of errors. 

Meanwhile, semi-monthly payments typically work better for salaried employees or companies with more fixed or consistent payroll patterns than for hourly staff. While it’s still possible to apply a semi-monthly arrangement to hourly teams, it can introduce difficulties with payroll calculations unless you really have a strong payroll system in place.

Do payroll laws affect pay schedules?

Yes. In many states, pay frequency is regulated by law, which means business owners can’t always choose freely between biweekly, semi-monthly, or monthly pay. 

Some states let employers decide how often to pay their staff, while others set a minimum required frequency (like once or twice a month). In some cases, rules vary by industry, employee type, or business size. 

Here are a few examples:

• Connecticut: Employers must pay employees no later than eight days after the pay period ends. Employers can apply for permission to use a less frequent schedule but must still pay at least monthly. 
• Hawaii: Employers must pay employees at least semi-monthly, with paydays no more than 15 days apart. Employees can opt for monthly pay via a formal election process. 
• Louisiana: In industries such as manufacturing, oil drilling, mining, and public service that employ 10 or more staff, employers must pay wages at least twice a month, ideally spaced about two weeks apart. 

Pay frequency rules vary, so it’s best to check with your state or local government to see if any prevailing pay frequency rules apply to you. This is especially crucial if you operate in different states and localities. 

How payroll software makes pay frequencies easier to manage

The right payroll system can make even the most complex pay schedules feel simple, whether you choose biweekly, semi-monthly, or a mix of both. For teams with hourly staff, multi-location operations, or varying employment types, automation is key. 

Here’s how Workforce.com’s payroll software helps:

Assign multiple pay frequencies to different employees 

There are cases when not all employees in a company are on the same pay schedule. With Workforce.com, you can assign different pay frequencies per worker or department, which helps streamline and automate the process when you have a team with various classifications and certain types of employee roles.

Automate overtime, pay rates, and shift differentials

Workforce.com automatically calculates overtime based on actual workweeks, no matter what pay frequency you use. It also accounts for multiple pay rates, shift differentials, premiums, and other forms of variable compensation. That way, you avoid manual edits or reworks, and it makes payroll easier to process, especially for hourly employees.  

Integrate time tracking and scheduling directly into payroll

With Workforce.com, you no longer have to worry about manually matching hours to pay periods. Time tracking, scheduling, and payroll all function in a single system, which means that employee work hours are easily calculated into wages and that you can see labor costs while creating shifts.

Give employees visibility and control

Employees must have visibility into how much pay they will receive on payday, as well as what factors contribute to their payroll calculations. With a built-in employee self-service portal and mobile app, your staff can: 

• See upcoming shifts and schedules
• View upcoming pay dates
• Update their bank account details
• See deductions
• Access pay stubs

Whether you decide to pay biweekly, semi-monthly, or go for another pay schedule, Workforce.com equips you to run payroll without a hitch with built-in time tracking, overtime automation, and the flexibility to manage multiple pay schedules.

Want to see how Workforce.com works for your business? Book a demo.

Additional FAQs about pay frequencies

Are there other pay frequencies besides biweekly and semi-monthly?

Yes. Other pay frequencies include:

• Weekly: Employees are paid once a week (typically 52 paychecks/year)
• Monthly: Employees are paid once a month (12 paychecks/year)

Some states restrict or discourage monthly pay for hourly workers due to long gaps between paydays. 

Can employers change pay frequencies?

Yes, but you must provide notice to employees (often in writing) and ensure the change complies with state labor laws.

What happens in a month with three biweekly paydays?

Because a biweekly pay frequency runs every 14 days, two months each year will include one additional paycheck. These extra paychecks don’t increase annual earnings, but they can affect things like benefits deductions, which are often only taken from the first two paychecks. Employers should plan for the added payroll run when budgeting.

Can hourly employees be paid semi-monthly?

Hourly workers can be on a paid semi-monthly pay period, but it can be more complex. This pay schedule often splits workweeks across pay periods, which makes overtime tracking and hourly calculations more challenging. If you pay hourly employees on a semi-monthly basis, you’ll need to ensure your payroll system properly handles overtime based on weekly thresholds, as required by the Fair Labor Standards Act (FLSA).