What is a Pay Period?
In order to calculate earned wages and schedule when employees receive their paychecks stubs, a pay period is used. Pay intervals are predetermined and typically repeat weekly, biweekly, semimonthly, or monthly. It’s critical to keep in mind that a pay period is distinct from a workweek.
Setting up a pay period is essential to maintaining the efficient operation of your organization. It ensures that your workers are paid on time for the task they do and makes taxes, costs, and more general finances easier to manage. It’s common that there isn’t a single, universal model for calculating pay frequency.
Depending on how an employee is classified, such as salary vs. wage, part-time, flexible employment, etc., you can set up various pay periods.
How Many Pay Periods in a Year?
The number of pay periods in a year depends on how frequently employees are paid.
- If employees are paid weekly, there are 52 pay periods in a year.
- If employees are paid bi-weekly, there are 26 pay periods in a year.
- If employees are paid semi-monthly (twice a month), there are 24 pay periods in a year.
- If employees are paid monthly, there are 12 pay periods in a year.
It is important to note that some years may have 27 bi-weekly pay periods, which can impact payroll tax budgeting and planning.
How Many Biweekly Pay Periods in 2023?
There are going to be 26 biweekly pay periods in 2023. This is because there are 52 weeks in a year, and biweekly pay periods occur every two weeks. Therefore, 52 weeks divided by 2 equals 26 pay periods.
Also, See: Bonus Pay | Holiday Pay | Vacation Pay | Regular Pay | Gross Pay | Net Pay | Overtime Pay | Base Pay | Incentive Pay