What is the distinction between biweekly and semi-monthly payroll?
Payroll processing on a bi-weekly basis is the most prevalent method of paying employees. Direct deposit on alternate Fridays is common, with 26 paycheck dates throughout the year. Because there are fewer fund transfers, the payroll processing cost is lower than the weekly payroll.
Semi-monthly Payroll is ideal for businesses that pay commissions on a regular basis or have a lag in receiving payments from a vendor or bureaucratic entity. We observe a lot of 1st and 15th check dates, as well as some unusual ones like the 4th and 18th. This frequency of processing occurs 24 times each year. Employees will be paid more than usual twice a year since certain months will have more working days than others.