Your HR & People Operations Questions, AnsweredWhat’s better: Bi-weekly payroll? Or 1st & 15th? And Why?
HR Questions>What’s better: Bi-weekly payroll? Or 1st & 15th? And Why?

What’s better: Bi-weekly payroll? Or 1st & 15th? And Why?

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Jean asked 3 years ago
I’ve always not completely understood this….curious if there are accounting / finance people out there who can help clarify! TIA

1 Answer
Riia O’Donnell replied 3 years ago
Not an accountant, but it probably depends on your business. If your accounting people prefer to run monthly numbers, they might like the 1st/15th payroll option because it keeps things within each month. If they have no preference, it’s up to you.
Employees might not like bimonthly as much, though. For hourly workers, biweekly or weekly paychecks are reliable: you know what you’ll earn if you put in the hours and you know when payday will be. In months where there are less/more than 30 days your paycheck can be larger or smaller – think February – which can make budgeting an issue. Salaried employees make out a bit in February, too – since they’re getting their standard 30/31 day salary for a month with only 28/29 days.
If you don’t have a preference, maybe ask your employees if they do! My guess is they’ll want every other week – it’s just easier to track, budget and pay bills.
Brad replied 3 years ago

Can an employee request his or her own pay grace as an hourly employee from bi monthly to weekly?

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