Biweekly pay means employees get paid every two weeks, usually on a set day like every other Friday. It’s different from weekly or monthly pay schedules, but it still provides a steady paycheck.
Benefits of Biweekly Pay
Employers often choose biweekly pay for a reason. Here’s why it works for both sides:
- Predictable Income: Employees know exactly when they’ll get paid, making it easier to plan ahead.
- Simplified Payroll: Employers save time and reduce payroll processing costs.
- Easier Budgeting: A regular paycheck every two weeks helps employees manage expenses more effectively.
- Better Cash Flow: Since biweekly pay often lines up with bill cycles, employees have money when they need it.
How Many Pay Periods in a Year with Biweekly Pay?
With biweekly pay, employees typically receive 26 paychecks per year. Since there are 52 weeks in a year, dividing by two gives you 26 pay periods.
How to Calculate Biweekly Pay
How you calculate biweekly pay depends on whether the employee is hourly or salaried:
- For Hourly Employees: Multiply the hourly rate by the number of hours worked in the pay period.
- For Salaried Employees: Divide the annual salary by 26 (the number of biweekly pay periods in a year).
For example, if an employee earns $50,000 annually, divide $50,000 by 26. That comes out to about $1,923 per paycheck.
Remember to factor in overtime, bonuses, taxes, and other deductions to get the final take-home pay.