{"id":194626,"date":"2021-06-07T10:07:12","date_gmt":"2021-06-07T14:07:12","guid":{"rendered":"https:\/\/www.attendancebot.com\/blog\/?p=194626"},"modified":"2021-08-31T06:25:41","modified_gmt":"2021-08-31T10:25:41","slug":"how-many-pay-periods-in-a-year","status":"publish","type":"post","link":"https:\/\/www.attendancebot.com\/blog\/how-many-pay-periods-in-a-year\/","title":{"rendered":"The Employer&#8217;s Guide to How Many Pay Periods in a Year"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">For every small business owner, it is difficult to answer the question, \u201cHow many pay periods in a year?\u201d <\/span><\/p>\n<p><span style=\"font-weight: 400;\">When it comes to employees, deciding a pay period is one of the primary concerns for any business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here is a comprehensive guide for employers to understand the concept of pay periods and other frequently asked questions by both employees regarding them.\u00a0<\/span><\/p>\n<p>AttendanceBot has an integration with Gusto that allows you to track time and attendance for employees and integrate directly with Gusto for payroll.<\/p>\n<p><a href=\"https:\/\/www.attendancebot.com\/gusto-integration\/?utm_source=blog&amp;utm_medium=in-line&amp;utm_campaign=how-many-pay-periods-in-a-year&amp;utm_content=above-the-fold\" target=\"_blank\" rel=\"noopener\">Explore the AttendanceBot and Gusto integration<\/a>.<\/p>\n<div class=\"lyte-wrapper fourthree\" style=\"width:960px;max-width:100%;margin:5px auto;\"><div class=\"lyMe\" id=\"WYL_NaefXxdpUoo\"><div id=\"lyte_NaefXxdpUoo\" data-src=\"https:\/\/blog.attendancebot.com\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=%2F%2Fi.ytimg.com%2Fvi%2FNaefXxdpUoo%2Fhqdefault.jpg\" class=\"pL\"><div class=\"tC\"><div class=\"tT\"><\/div><\/div><div class=\"play\"><\/div><div class=\"ctrl\"><div class=\"Lctrl\"><\/div><div class=\"Rctrl\"><\/div><\/div><\/div><noscript><a href=\"https:\/\/youtu.be\/NaefXxdpUoo\" rel=\"nofollow\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/blog.attendancebot.com\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2FNaefXxdpUoo%2F0.jpg\" alt=\"YouTube video thumbnail\" width=\"960\" height=\"700\" \/><br \/>Watch this video on YouTube<\/a><\/noscript><\/div><\/div><div class=\"lL\" style=\"max-width:100%;width:960px;margin:5px auto;\"><\/div><\/p>\n\n<h2><b>What Is a Pay Period?<\/b><\/h2>\n<p>A pay period is a frequency at which a company needs to make payroll. On the flip side, that also means a pay period determines the number of times employees receive their paycheck.<\/p>\n<p>The pay period is important for a number of reasons. For instance, it is the basis of tax liability and allocations for employee benefits.<\/p>\n<h2><b>Types Of Pay Periods\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Common pay frequencies used by a majority of employers are:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Weekly<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bi-weekly\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Semi-monthly\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Monthly\u00a0<\/span><\/li>\n<\/ul>\n<h3><b>Weekly Pay Period\u00a0<\/b><b><\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In the weekly pay period, employers release the payment for their employees at the end of every week. This means the employee receives 52 paychecks every year.\u00a0<\/span><\/p>\n<h4><b>Pros of a Weekly Pay Period<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This pay period works best for employees hired to work on an hourly basis<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Weekly payments increase the morale and productivity of the employee and motivate them to perform better<\/span><\/li>\n<li aria-level=\"1\">Employees who are paid weekly are probably living paycheck to paycheck. Having that weekly paycheck eases their financial burdens and ensures a regular cash flow.<\/li>\n<\/ul>\n<h4><b>Cons of a Weekly Pay Period<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Processing payment every week is a time-consuming process<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There can be no scope of delay in payments as the employees expect their wages on the same day every week<\/span><\/li>\n<\/ul>\n<h3><b>Bi-Weekly Pay Period\u00a0<\/b><b><\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Payment is processed on a specified day every two weeks in a bi-weekly pay period. This works out 26 bi-weekly pay periods in a year.\u00a0<\/span><\/p>\n<h4><b>Pros of Bi-Weekly Pay Period\u00a0<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ideal for hourly workers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The bi-weekly pay period is less time-consuming than processing weekly payments.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The employee will receive frequent paychecks in a month, which will motivate them and increase their productivity at the workplace.\u00a0<\/span><\/li>\n<\/ul>\n<h4><b>Cons of Bi-Weekly Pay Period\u00a0<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In some years, there can be 27 pay periods which means that you have to pay additional wages to the employees. However, that occurs only once every 11 years<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There are situations where the first and last pay period is in two different months which can make payroll deductions complex<\/span><\/li>\n<\/ul>\n<h3><a href=\"https:\/\/www.attendancebot.com\/gusto-integration\/?utm_source=blog&amp;utm_medium=banner&amp;utm_campaign=how-many-pay-periods-in-a-year\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-194630 size-full\" src=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA-1.jpg\" alt=\"Blog CTA for How Many Pay Periods in a Year\" width=\"785\" height=\"128\" srcset=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA-1.jpg 785w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA-1-300x49.jpg 300w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA-1-768x125.jpg 768w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA-1-100x16.jpg 100w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA-1-700x114.jpg 700w\" sizes=\"auto, (max-width: 785px) 100vw, 785px\" \/><\/a><\/h3>\n<h3><b>Semi-Monthly Pay Period<\/b><\/h3>\n<p>A semi-monthly pay period is processed for payroll <span style=\"font-weight: 400;\">on the 15th\/16th and 30th or last day of the month. <\/span><span style=\"font-weight: 400;\">The employer needs to make payroll 24 times per year.\u00a0<\/span><\/p>\n<h4><b>Pros of Semi-Monthly Pay Period<\/b><\/h4>\n<ul>\n<li aria-level=\"1\">Employees can plan their finances accurately as payments are made twice a month on a fixed date<\/li>\n<li aria-level=\"1\">Best suited for salaried employees<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is simple to manage and there will be no complication on leap years<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The payroll processing cost is lesser as compared to other pay periods\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accruals and contracted benefits are easy to calculate in semi-monthly pay periods<\/span><\/li>\n<\/ul>\n<h4><b>Cons of Semi-Monthly Pay Period<\/b><\/h4>\n<ul>\n<li aria-level=\"1\">On holidays, the payment date becomes a task. In that case, it needs to be processed in advance to ensure payroll is made on time.<\/li>\n<\/ul>\n<h3><b>Monthly Pay Period\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A monthly pay period, also called the monthly salary, is processed on the 30th or the last day of every month. With a monthly pay period, an employee gets 12 paychecks per year.\u00a0<\/span><\/p>\n<h4><b>Pros of Monthly Pay Period\u00a0<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payroll only once a month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There will be a fixed date every month for the employees to expect their payment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Most suitable option for salaried employees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It saves time and makes calculations, deductions, and payments of taxes easier<\/span><\/li>\n<\/ul>\n<h4><b>Cons of Monthly Pay Period\u00a0<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Not suited for employees working on an hourly basis<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Like semi-monthly pay, the payday needs to be adjusted earlier if it falls on a holiday to avoid inconvenience for the employees<\/span><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-194631\" src=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/How-Many-Pay-Periods-in-a-Year-FAQ-1024x682.jpg\" alt=\"How Many Pay Periods in a Year FAQ\" width=\"668\" height=\"445\" srcset=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/How-Many-Pay-Periods-in-a-Year-FAQ-1024x682.jpg 1024w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/How-Many-Pay-Periods-in-a-Year-FAQ-300x200.jpg 300w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/How-Many-Pay-Periods-in-a-Year-FAQ-768x512.jpg 768w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/How-Many-Pay-Periods-in-a-Year-FAQ-100x67.jpg 100w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/How-Many-Pay-Periods-in-a-Year-FAQ-675x450.jpg 675w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/How-Many-Pay-Periods-in-a-Year-FAQ.jpg 1280w\" sizes=\"auto, (max-width: 668px) 100vw, 668px\" \/><\/p>\n<h2><b>Frequently Asked Questions on How Many Pay Periods In A Year<\/b><\/h2>\n<h3><b>What is the difference between a pay period and a pay date?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The pay period is the duration of time your team works and the pay date is the particular day on which the team receives their paychecks.\u00a0<\/span><\/p>\n<h3><b>How To Calculate Pay Periods?\u00a0\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">This decision on pay periods is based on many factors, such as:\u00a0<\/span><\/p>\n<ul>\n<li aria-level=\"1\">What is the payment cycle to the company from end-users?<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How often do employees need their paycheck?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are your employees hourly or salaried?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What type of pay period does the state where you function approve?\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For instance, for an employer who has hourly employees, the weekly pay period is best. This is because most companies give weekly paychecks to hourly employees and they&#8217;ve come to expect that cycle too.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if a company has more salaried employees and bills its clients at the end of the month, then a bi-monthly or monthly pay period will be suitable.<\/span><\/p>\n<h3><b>Can the employers change pay periods during the year?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A company or employer can change pay periods during the year. It may be complex and cumbersome, but not impossible.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before proceeding with changing pay periods, the employer has to review and comply with the <a href=\"https:\/\/avitusgroup.com\/payroll-services-full\/biz\/changing-payday-legally\/\" target=\"_blank\" rel=\"noopener\">regulations set by the Fair Labor Standards Acts (FLSA)<\/a>.\u00a0\u00a0<\/span><\/p>\n<h3><b>Is it possible to use different pay period schedules for each employee?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, it is possible. If it is convenient for the employer, then they can have different pay periods for each employee. For instance, if you have different departments in your company then you can set up semi-monthly for upper management and weekly for salaried employees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Setting up different pay period schedules for employees is beneficial for larger companies. For companies with less than 100 employees, it is beneficial to stick to a single pay period for all employees to reduce payroll complexities.\u00a0<\/span><\/p>\n<h3>What is the difference between a pay stub and a pay period?<\/h3>\n<p>A pay stub is a document where an employee&#8217;s pay is broken down into its components. Paystub is a slightly dated term and now it is usually referred to as a payslip. A paystub mentions the following:<\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">Employer information<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Employee information<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Pay period<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Employee pay break-up<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Gross pay\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Deductions\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Net take-home salary<\/span><\/li>\n<\/ul>\n<p>Read our blog to learn more about <a href=\"https:\/\/www.attendancebot.com\/blog\/paystub\/?utm_source=blog&amp;utm_medium=in-line&amp;utm_campaign=how-many-pay-periods-in-a-year\" target=\"_blank\" rel=\"noopener\">paystubs along with templates<\/a>.<\/p>\n<h2><b>How Many Pay Periods in a Year is Right for Your Company?\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">How many pay periods in a year?\u00a0<\/span><\/p>\n<p>This seems like a fairly straightforward question but the right one for your company is the one you can make payroll on comfortably.<\/p>\n<p><span style=\"font-weight: 400;\">Every pay period has its own pros and cons and choosing one of them is essentially based on your business needs and team size. The pay period you choose isn&#8217;t that important.<\/span><\/p>\n<p>The only thing that matters is that every payroll is accurate and on time.<\/p>\n<p>But in case you do have issues with payroll and want to solve them retroactively, here is a <a href=\"https:\/\/www.attendancebot.com\/blog\/retroactive-pay\/?utm_source=blog&amp;utm_medium=in-line&amp;utm_campaign=how-many-pay-periods-in-a-year&amp;utm_content=final\" target=\"_blank\" rel=\"noopener\">guide on retro pay for employers<\/a>.<\/p>\n<p><a href=\"https:\/\/www.attendancebot.com\/gusto-integration\/?utm_source=blog&amp;utm_medium=banner&amp;utm_campaign=how-many-pay-periods-in-a-year&amp;utm_content=final\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-194628 size-full\" src=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA.jpg\" alt=\"Blog CTA for How to Calculate Pay Periods\" width=\"785\" height=\"128\" srcset=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA.jpg 785w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA-300x49.jpg 300w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA-768x125.jpg 768w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA-100x16.jpg 100w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/06\/Blog-CTA-700x114.jpg 700w\" sizes=\"auto, (max-width: 785px) 100vw, 785px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For every small business owner, it is difficult to answer the question, \u201cHow many pay periods in a year?\u201d When it comes to employees, deciding&#8230;<\/p>\n","protected":false},"author":1,"featured_media":194629,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-194626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-best-practices"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.8 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Employer&#039;s Guide to How Many Pay Periods in a Year | AttendanceBot<\/title>\n<meta name=\"description\" content=\"How many pay periods in a year? 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