What is Biweekly Payroll?
Biweekly payroll is a type of payroll schedule in which employees are paid every two weeks. This is a common payroll schedule used by many employers across various industries. Some employers prefer this system because it offers employees a regular paycheck while also providing flexibility in budgeting and financial planning.
Under the biweekly payroll schedule, employees receive 26 paychecks each year. Each paycheck covers a two-week pay period, meaning the employer must calculate employee pay based on the number of hours worked during that period. Employers must also withhold payroll taxes and other deductions from each paycheck, such as contributions to retirement plans or health insurance premiums.
One potential downside of the biweekly payroll schedule is that it can be challenging for employees who live paycheck to paycheck to budget their finances. This is because the paychecks are issued every two weeks instead of weekly, so employees must plan for longer periods between paychecks. However, this can also be seen as a benefit for those who prefer to receive larger paychecks less frequently.
Another factor to consider with biweekly payroll is that some months may have three pay periods instead of two. This can occur when a biweekly pay schedule does not align perfectly with the calendar month and can result in an extra paycheck for employees. Employers must account for this when budgeting and planning for payroll expenses.
Employers who use biweekly payroll can calculate employee pay manually, using payroll software, or by outsourcing payroll to a third-party provider. Many employers outsource their payroll to a third-party provider because it saves them time and money while ensuring compliance with all relevant laws and regulations.
Conclusion
Many employers use biweekly payroll as a popular payroll schedule. It provides employees with a regular paycheck while offering some flexibility in budgeting and financial planning. Employers must calculate employee pay based on the number of hours worked during the two-week pay period and withhold payroll taxes and other deductions from each paycheck. While it has some potential challenges, it is still a widely used pay schedule in many industries.
