Pay frequency is the amount of time between an employee's paydays. It determines how often employees are paid and the number of paychecks an employee receives.
Below are 2 common types of Pay Frequencies with their corresponding descriptions:
1. Twice A Month (also called Semi-Monthly or Bi-Monthly)
With this pay frequency, employees receive wages twice a month. Payroll check date falls on specific dates , but the days may differ. For example, some employers pay their employees on the 1st and 15th of each month or on the 15th and 30th of the month. With the Twice A Month pay frequency employees receive a total of 24 paychecks during the calendar year.
2. Every Two Weeks (also called Bi-Weekly)
With this pay frequency, payroll is processed every two weeks.
Employees receive two paychecks each month, although some months differ. There are two months in the year where employees receive three paychecks instead of two.
The employer chooses a set day such as Thursday or Friday and issues payment every other week on that day. With the Biweekly pay frequency , employees receive the equivalent of 26 paychecks during the calendar year.