Definition of Pay Periods
What is a Pay Period?
A pay period defines how often employees are paid (pay frequency) and how many regular paychecks they’ll receive in a year. An employee’s pay frequency will also determine the portion of monthly deductions that are taken from each paycheck.
Types of Pay Periods
|Type||Pay Frequency||# of paychecks in year|
|Semi-monthly||Twice a month on two specific days of the month, e.g., 15th and 30th.||24 paychecks|
|Bi-weekly||Every two weeks on a specific day of the week, e.g., every other Friday.||26 paychecks|
|Weekly||Once a week on a specific day of the week, e.g., each Friday.||52 paychecks|
|Monthly||Once a month on specific date, e.g., 30th.||12 paychecks|
Pay periods define the number of days of work for which each employee is paid on each paycheck.