Semi-Monthly vs. Bi-Weekly Payroll: Key Differences & Pay Periods

Quick answer: Bi-weekly payroll pays employees every two weeks on a fixed weekday (such as every other Friday), resulting in 26 pay periods per year. Semi-monthly payroll (often called bi-monthly payroll) pays employees twice a month on two specific calendar dates (such as the 15th and the last day of the month), resulting in 24 pay periods per year.

How many payroll weeks are in a year?

A standard calendar year has 52 payroll weeks. How those weeks divide depends on the pay schedule your small business chooses:

• Weekly payroll: 52 paychecks per year (paid once a week). Popular for restaurants, construction and hourly workers.
• Bi-weekly payroll: 26 paychecks per year (paid every two weeks). Ten months have two pay dates, and two months each year have three pay dates.
• Semi-monthly payroll (bi-monthly payroll): 24 paychecks per year (paid twice a month, typically on the 1st and 15th or the 15th and last day).
• Monthly payroll: 12 paychecks per year (paid once a month). Common for salaried corporate executives or single-owner S-Corps running self-employed payroll.

How does bi-weekly payroll work for hourly employees?

Because the federal Fair Labor Standards Act (FLSA) calculates overtime on a 40-hour workweek (seven consecutive 24-hour periods), bi-weekly payroll aligns cleanly with two full workweeks (80 regular hours before overtime). With semi-monthly payroll, pay periods often split the middle of a workweek, making overtime tracking more complex for hourly staff.

Which pay schedule should your small business choose?

• Choose weekly or bi-weekly payroll if most of your team is paid hourly, earns tips or works overtime (for example, restaurants and fast food, grocery stores or warehouses).
• Choose semi-monthly payroll if your team is mostly salaried and you want payroll expenses to match your monthly bookkeeping and rent cycle.
• Check state payday laws first: Several US states require specific minimum pay frequencies for hourly workers.

Whether you run payroll in QuickBooks Payroll or ADP, our small business payroll services handle your pay runs, tax withholdings and quarterly Form 941 filings accurately.

Frequently asked questions