However, as a good practice, most employers plan accordingly and choose to pay on the preceding business day. If it were not a leap year, the biweekly pay period calculation would have been much more straightforward. Calculate the number of weeks in a year- in a non-leap year it is 52- and divide it by two. https://quick-bookkeeping.net/ If you choose to go with the biweekly pay periods, here is how it works. The word biweekly may sometimes have a dash between the prefix bi and the rest of the word. Whether someone is describing a bi-weekly paycheck or biweekly payment plans, it’s essential to know that both are accepted forms of the word.
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As always, it’s important to remember that payroll scheduling isn’t one size fits all. You should evaluate biweekly pay for yourself and see if it makes sense for your company’s needs. Some employees might have a difficult time understanding a biweekly pay system.
What Is Bi Weekly Pay?
In most cases, the word biweekly is used to describe things that happen every two weeks. For example, if you have a biweekly paycheck, that means you receive paychecks roughly every two weeks. If you are a borrower making biweekly payments to a lender, that means you are making payments approximately every fourteen days. This is a widespread pace for many different lenders and organizations when dealing with large numbers of consistent recurring payments.
- While many payroll software and services providers offer an unlimited number of payroll runs, there are some payroll service providers that charge for each payroll run.
- It’s important to provide context as to which definition you’re using when developing a meeting agenda or other documents for other people.
- If you regularly work overtime calculator, then you can add that income as well to your biweekly check.
- Start by finding out how much money is withheld from your check for things like company health insurance or retirement plans.
- This may be a disadvantage for those that rely cannot manage their expenses.
Some things — like eating, sleeping, and doing work — are daily necessities for life. Some weekly chores might include getting gas for a car, posting on social media, or doing laundry. These regular events are a large part of what makes up our lives. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Biweekly pay means you pay your employees on a set day once every two weeks, resulting in 26 paychecks per year. Because payday occurs once every two weeks, some months will have three paychecks. Biweekly can be helpful if most of your employees are hourly workers.
How do I use the bi-weekly salary to calculate the annual salary?
It is not a proper noun, so the hyphenated form doesn’t need either part written as a capital letter. On the other hand, something that is bi-weekly would be something that happens on a specific day every other week, like every other Saturday. If you are taking biweekly classes or have a biweekly meeting, the odds are good that it is happening every other week. A biweekly publication or biweekly magazine is released every other week. For example, if you use the word semiweekly, you can be referring to something that happens every Monday and every Thursday.
More from Merriam-Webster on biweekly
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Responses to “Number of Hours per Pay Period”
Biweekly pay is a salary or wage paid every two weeks, usually on Fridays. If one payment date falls on a holiday, the standard practice is making the payment on the previous day (i.e., Thursday). According to Google Ngram Viewer, “biweekly” is the most popular choice for native writers. It’s always been the more popular choice in recent decades, but there are some instances where “bi-weekly” is used.
Step One: Determine Your Hourly Wage
Gusto offers excellent payroll processing for small businesses, with several plans available to choose from. Gusto includes flexible payroll schedules, unlimited payroll runs, and multistate payroll capability. OnPay is designed for small businesses, with the ability to scale up to support mid-size businesses as well.
We’ll dive deeper into the meaning of biweekly, why it sometimes confuses people, provide synonyms to avoid uncertainty, and discuss other time-related words that use the bi- prefix. To make the process easier and remove much of the guesswork, many businesses opt to use a payroll service. For more information, check out the best payroll services for small businesses. When setting up payroll for the first time, take a bit of time to determine which payroll cycle will work best for your business.
While it’s the most affordable and least labor-intensive option, most employees don’t prefer it. That’s why it’s not as common as other, more frequent payday schedules. A biweekly payday means that it’s harder to get performance feedback since there are fewer opportunities over the year.
If you deduct benefits from your workers’ paychecks, a bimonthly schedule is a smart choice. Since many types of benefits, including health insurance benefits, come with premiums that are charged every month, a bimonthly schedule will make processing them easier. If the majority of your employees are paid hourly, it might be best to opt for biweekly.