Biweekly vs. Semimonthly Pay: Key Differences and How to Choose

When it comes to choosing how often to pay employees, many companies debate between biweekly vs. semimonthly pay. While the terms sound similar, they impact everything from payroll processing to how employees budget their income.

In a recent article from Lattice, our very own Shannon Curtis, SHRM-CP, shared her expertise on this topic. As a Senior HR Business Partner, Shannon explained how important it is for HR teams and leadership to understand the nuances between these two pay frequency options.

“While these two pay frequencies seem similar, they can differ in a few key ways that affect HR, finance, and your employees,” said Shannon Curtis, SHRM-CP, Senior HR Business Partner at Lattice.

-Shannon Curtis, SHRM-CP

So, what’s the real difference between biweekly payroll and a semimonthly payroll schedule?

• Biweekly payroll means employees are paid every other week — typically resulting in 26 paychecks per year.

• Semimonthly payroll happens twice a month — usually on set dates like the 15th and 30th — adding up to 24 pay periods per year.

Key takeaways

Payroll Frequency:

• Biweekly: 26 paychecks/year

• Semimonthly: 24 paychecks/year

Payday Consistency:

• Biweekly Pay: Always on the same day of the week (e.g., every other Friday)

• Semimonthly Pay: Always on the same date (e.g., 15th and 30th)

Overtime Calculations:

Easier to track with biweekly schedules since it aligns better with a 40-hour work week.

Cash Flow Management: Semimonthly pay can be easier for finance teams because it aligns with calendar months and reporting.

Employee Preference:

Some employees may prefer biweekly pay because they get two “extra” checks during the year.

Complexity:

• Biweekly pay can complicate budgeting and payroll processing during months with three pay periods.

• Semimonthly pay can complicate overtime calculations for hourly employees.

Decision Factors:

Consider state laws, employee classification (hourly vs. salaried), and payroll system capabilities before deciding if you use: biweekly vs. semimonthly pay