How is a pay period different from a pay date?

Pay date refers to the specific date when employees receive their paychecks. A pay period has a start and end date, which refers to the range of dates an employee worked and should receive compensation for. While the two aren't the same, the pay date can fall on the last day of the pay period.

What are the most common pay period types?

Weekly, biweekly, semimonthly, and monthly are the four standard pay period types used in the United States:

• Weekly Pay: Employees are paid once a week, usually on Fridays, totaling 52 paychecks a year. This schedule works well for hourly workers and industries with frequent overtime but requires the most frequent payroll processing.

• Biweekly Pay: The most common pay schedule in the U.S., biweekly pay happens every two workweeks (26 times a year). It works for both salaried and hourly employees. Note that employers will have to process three paychecks for two months of the year.

• Semimonthly Pay: Employees receive pay twice a month, typically on the 1st and 15th, for a total of 24 paychecks a year. This schedule aligns well with benefit deductions but can make overtime calculations more complex due to varying pay period lengths.

• Monthly Pay: With just 12 paychecks a year, monthly pay requires the least payroll processing. However, some states don't allow it for hourly workers, and it's generally reserved for executives or certain industries.

Pay Periods for Hourly and Salaried Employees 

In general, companies with hourly employees tend to opt for weekly or biweekly pay periods, which can make it easier to track variable hours or overtime. If a company has mostly salaried employees, semimonthly pay periods tend to be easier, as payroll is run on the same dates every month. Beyond workforce considerations, industry can also play a big role in determining which pay period makes the most sense.