Biweekly Pay Meaning, Definition, Examples, Calculation

As the name implies, biweekly pay is the concept of paying your staff every two weeks on a specific day of the week. Some months may include three paychecks because with a biweekly pay schedule, employees receive a paycheck every two weeks, resulting in 26 paychecks a year. This means in two months of the year, employees receive three paychecks instead of the usual two.

This 2-week payment schedule helps employees manage their expenses in a better way with consistent paychecks every 2 weeks. Additionally, it benefits employers by simplifying payroll processing and reducing the time and effort spent on calculating wages and overtime. Hence, reducing the chances of payroll errors.

Calculate Biweekly Salary

Bi-Weekly Payroll Calculation for Hourly Employees

To calculate bi-weekly payroll for hourly workers, multiply the employee’s hourly wage by the total number of hours worked over the two-week pay period.

Example:
If an employee earns $30 per hour and works 80 hours in two weeks:
$30 × 80 = $2,400

Bi-Weekly Payroll Calculation for Salaried Employees

For salaried employees, divide the annual salary by 26 (the number of bi-weekly pay periods in a year).

Example:
If an employee’s annual salary is $70,000:
$70,000 ÷ 26 = $2,692.31 per paycheck

Frequently Asked Questions

Q1.	What is biweekly pay?
Ans.	Bi-weekly pay describes a situation when employees get their pay every two weeks on a specific day of the week.
Q2.	How many biweekly pay periods are there in a year?
Ans.	Since every calendar year has 52 weeks, this leads to a total of 26 paychecks per year. Therefore, there are 26 biweekly pay periods in a year.
Q3.	What is the difference between biweekly and semi-monthly pay?
Ans.	The main difference between biweekly pay vs semi-monthly pay schedules is the frequency and timing of payments. Biweekly pay occurs every two weeks, generally on the same weekday (e.g., every other Friday), thus resulting in 26 pay periods per year. On the other hand, semi-monthly pay is issued on two fixed calendar dates each month (like the 5th and 20th), totaling 24 pay periods per year. Key Differences: Biweekly Pay – Paid every two weeks or alternate weekly pay (e.g., every other Friday) – 26 pay periods annually – Easier overtime calculation due to consistent workweeks in case of biweekly salary – May lead to higher payroll costs and more complex bookkeeping due to extra pay periods Semi-Monthly Pay – Paid twice a month on fixed dates (e.g., 5th and 20th) – 24 pay periods annually – Overtime can be harder to calculate if extra hours span across different semi-monthly pay periods
Q4.	Does biweekly pay affect taxes?
Ans.	An employee’s total tax doesn’t change based on how often they get paid. Taxes are based on how much they earn in a year, not how often they receive a paycheck. The same applies to employers. While the tax amount taken from each paycheck may vary depending on the pay schedule, such as weekly, biweekly paycheck frequency, or monthly, the total tax paid over the year remains the same. It’s important to understand biweekly pay tax implications to ensure accurate withholding and better financial planning.
Q5.	Is biweekly pay better than weekly?
Ans.	It depends on the individual’s personal preferences, what works out best for them between biweekly vs weekly pay. If a person likes getting money more often, they would prefer weekly pay. If they’re comfortable with getting paid less often but in bigger amounts, biweekly or fortnightly pay could be a better option for them.
Q6.	Which industries use biweekly pay?
Ans.	In the U.S., over 36% businesses use a biweekly pay schedule. According to the Department of Labor (DOL), the three industries using this pay schedule the most are: – Education and Health Services – Leisure and Hospitality – Information Industry In India, a bi-weekly payroll schedule is mostly used in education, healthcare, hospitality, leisure, and the information industry.
Q7.	What are the pros and cons of biweekly pay?
Ans.	Advantages of a Biweekly Pay Schedule – Saves Time: Biweekly payroll is processed only once every two weeks, reducing time spent on calculations and therefore leading to fewer chances of payroll errors. – Reduces Costs: Fewer processing fees from payroll service providers. Hence, it saves money on direct deposits, checks, and courier services. – Less Paperwork: Fewer pay periods mean fewer documents to print and file. – Easier Check Reconciliation: Fewer checks to issue and track, consequently reducing the risk of lost or stolen checks. Disadvantages – Payroll processing costs may be higher due to frequent transactions. – The end of the year often falls in the middle of a biweekly pay period, which can make it harder to calculate yearly earnings and deductions starting from January 1. – Employees get paid less often than with weekly pay, which can make it harder to manage their money. – Since biweekly pay doesn’t follow a fixed monthly schedule, it can be tricky to budget, as some months have three paychecks, while others only have two.
Q8.	Can biweekly pay save costs for companies?
Ans.	Yes, biweekly pay can help companies reduce costs. To begin with, biweekly payroll calculation cuts down the number of payroll processing runs compared to a weekly schedule. As a result, businesses spend less on administrative tasks and payroll provider fees. Additionally, it can make payroll management more efficient and even support better cash flow planning over time.
Q9.	How should HR implement biweekly pay?
Ans.	When switching to a biweekly pay schedule, HR should take a thoughtful and transparent approach. As part of HR’s biweekly pay best practices, it’s important to give employees advance notice so they have time to adjust their personal finances. Next, clearly communicate the reasons for the change, along with the benefits, such as fewer payroll deductions per cycle and more consistent scheduling. To build trust, HR should also share both the pros and cons of the new pay structure and provide an FAQ document to answer common concerns. Hosting an open discussion or Q&A session can also help address confusion early on. Consistent, clear communication and preparation are key to making the transition smooth and successful.