Biweekly pay is a type of payroll schedule where employees are paid every two weeks, typically on a set day, such as every other Friday. This is different from the more common weekly or monthly pay schedules. But, it still provides a regular and predictable income. 

Benefits of biweekly pay

There are many reasons why an employer might choose a biweekly pay structure, such as

  • Predictable Income: Employees receive regular paychecks on consistent dates, providing financial stability and predictability.
  • Simplified Payroll: Biweekly pay schedules are easier to administer for employers, reducing payroll processing time and costs.
  • Budgeting Ease: Employees can budget and manage expenses more effectively with a steady biweekly income stream. 
  • Enhanced Cash Flow: Biweekly pay often aligns with bill payment cycles, ensuring employees have funds available when needed.

How many pay periods in a year biweekly

Biweekly pay usually results in 26 pay periods in a year. There are 52 weeks in a year, and if you divide that by two (since employees are paid every two weeks), you get 26 paychecks annually.

How to calculate biweekly pay

There are two ways to calculate biweekly pay depending on whether the employee is paid hourly or with an annual salary. 

  1. Determine the employee’s hourly rate or salary amount.
  2. Multiply the hourly rate by the number of hours worked in the pay period if the employee is hourly. 
  3. If salaried, divide the annual salary by 26 (the number of biweekly pay periods in a year).
  4. The result is the employee’s biweekly pay amount.

For example, if an employee earns a salary of $50,000 per year, their biweekly pay would be $50,000 divided by 26, which is approximately $1,923.

In order to complete payroll processing, you also need to add overtime earnings and bonuses (when applicable) and deduct pre-tax contributions and applicable taxes. 

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