Choosing a pay period

Payroll laws require employers to pay their employees on a regular schedule.

Employees live life and have bills to pay, so it's important to them to know when the money comes in.

That's why employers have to follow a pay period.

In the US, there are generally four choices...

• Once a week (Weekly)
• Every two weeks (Bi-weekly)
• Twice a month (Semi-monthly)
• Once a month (Monthly)

But which one do you choose?

Despite the vast amount of information on search, it's really simple.

If you have lower-skilled employees, pay them every week.

If you have higher-skilled employees, pay them every two weeks.

With either one, paydays will be predictable, weekly overtime will be easy to understand, and you'll be in compliance with any State in the US.

You could opt for Semi-monthly with fewer paydays in a year, but with technology you don't need it. Other than clicking a button there are no additional expenses. Know too that Semi-monthly makes payroll more complicated as it requires constant calendar changes with potential weekend/holiday conflicts.

You could opt for Monthly, but only if your State allows it, and if it makes sense for your business. There are companies that use it, but far fewer.

If it helps, most companies in the US pay every two weeks.