Picking Pay Periods
You need to designate how frequently you plan to pay your employees. Four pay periods are generally used today:
• Weekly: Employees are paid 52 times per year.
• Biweekly: Employees are paid 26 times per year or every two weeks.
• Semimonthly: Employees are paid 24 times per year or twice per month.
• Monthly: Employees are paid 12 times per year or once per month.
You can choose to use any of these pay periods and may even choose to pay some employees weekly and others monthly. Whatever you determine should be a clearly stated policy. The accounting department is responsible for carrying out that policy and calculating each employee’s check based on that employee’s pay period and wage category.