Understanding Payroll Schedules

Payroll schedules can be confusing, but understanding them is essential! Check out this handy guide on common payroll schedules.

In this article, you find a breakdown of common pay cycles or work periods & benefit deductions. 

• Weekly: Employees are paid on a weekly basis, typically weekly on the same day. Benefit deductions for employees on a weekly pay cycle are calculated and deducted from each paycheck.
  • Ex. Payday is every Friday

• Bi-Weekly: Employees are paid once every two weeks, resulting in 26 pay periods per year. Benefit deductions for employees on a bi-weekly pay cycle are also calculated and deducted from each paycheck. 

  • Ex. Payday is every other Friday

• Monthly: Employees receive their pay once per month, typically on the same day each month. Benefit deductions for employees on a monthly pay cycle are also deducted from each paycheck, but the deduction amounts may be significantly larger compared to shorter pay cycles, as they need to cover an entire month's worth of benefits.

  • Ex. Payday is the 15th of each month

• Semi-Monthly: Employees are paid twice per month, usually on specific dates such as the 15th and the last day of the month, resulting in 24 pay periods per year. Benefit deductions for employees on a semi-monthly pay cycle are deducted from each paycheck, but the deduction amounts may be larger compared to weekly or bi-weekly pay cycles since the total deductions need to cover a shorter time frame.

  • Ex. Pay dates are the 15th & 30th of each month

If you have any other questions, please reach out to our Payroll Specialist team at embeddedpayroll@goco.io.

Disclaimer: Information provided in this material is not all-inclusive and is for educational purposes only; it does not constitute legal advice.

 

Published 5.23.24