This guide simplifies everything you need to know about biweekly pay—how it works, how to set it up, why many teams love it, and the common gotchas to avoid.
What is biweekly pay?
Biweekly pay means employees are paid every two weeks on a set weekday (e.g., every other Friday). That typically creates 26 paychecks per year (occasionally 27, depending on calendar alignment). It’s different from semi-monthly pay (15th & last day—24 paychecks) and weekly pay (every week—52 paychecks).
Biweekly vs. other pay schedules (at a glance)
| Schedule | # of checks | Pros | Cons |
|---|---|---|---|
| Weekly | 52 | Very predictable for hourly staff; quick OT payout | Higher processing effort/cost |
| Biweekly | 26 (sometimes 27) | Popular balance of frequency & admin effort; simple for overtime | Two “3-paycheck” months can complicate deductions/budgeting |
| Semi-monthly | 24 | Aligns with monthly bills/benefits | Overtime is tracked weekly but spans split periods—can be messy |
| Monthly | 12 | Lowest processing effort | Long time between checks; cash-flow strain for employees |
Logistics of managing a biweekly payroll system
- Set the schedule correctly: Pick a consistent workweek and pay period (e.g., workweek Sun–Sat; pay period = two consecutive workweeks). Choose a fixed pay day (e.g., every other Friday). Avoid “1st & 15th”—that’s semi-monthly, not biweekly.
- Timekeeping & overtime: Track hours accurately. In many jurisdictions (e.g., U.S. FLSA), overtime is calculated by workweek—you can’t average across the two weeks in a biweekly period.
- Processing: Ensure your payroll system supports biweekly runs, direct deposit timelines, and mid-period corrections.
- Cash flow planning: Budget for two months each year that will include three pay dates. Plan benefit/tax deduction rules for those months (see “Challenges”).
- Compliance: Verify local/state payday frequency rules, pay timing, final-pay rules, and minimum wage/overtime requirements.
Advantages of biweekly pay for employers and employees
For employees
- Consistent, frequent income that supports budgeting and reduces financial stress.
- Predictability—same weekday every two weeks.
For employers
- Smoother operations than weekly, simpler OT than semi-monthly.
- Happier teams—regular pay boosts satisfaction, retention, and productivity.
- Fewer corrections than longer cycles; potential admin savings over time.
Which industries commonly use biweekly pay?
Biweekly pay is common in healthcare (shift work + OT), education, retail and hospitality (variable hours), and manufacturing (rotations/OT). Its cadence fits hourly work and predictable staffing cycles.
How to calculate biweekly pay (quick examples)
- Salaried employee: Biweekly gross =
Annual salary ÷ 26.
Example: £52,000 ÷ 26 = £2,000 gross per paycheck. - Hourly employee (no OT): Biweekly gross =
hourly rate × hours per week × 2.
Example: £15 × 40 × 2 = £1,200. - Hourly with OT (weekly rule): Calculate overtime for each week separately.
Week 1: 45 hrs → 40 × £15 + 5 × (£15 × 1.5) = £600 + £112.50 = £712.50
Week 2: 38 hrs → 38 × £15 = £570
Paycheck gross = £712.50 + £570 = £1,282.50
Taxes and benefit deductions are then applied per pay period according to your setup.
Challenges of biweekly payroll
- Cash-flow demands: Funding payroll every two weeks, plus planning for two “3-paycheck” months.
- Benefit deductions: Monthly premiums don’t divide neatly. Choose one method:
— 26 even splits: annual premium ÷ 26 (same deduction every check).
— 24-split with skips: deduct on two checks per month and skip the third check when it occurs.
Document your method and communicate in advance. - 27th paycheck years: If the calendar yields 27 pay dates, decide whether to pro-rate salaried biweekly rates to keep the annual salary constant or fund an extra check. Communicate early.
- Cutoff coordination: Late timesheets can cause errors; set clear submission deadlines.
How to implement biweekly payroll (5 steps)
- Plan your calendar: Define workweek, period start/end, pay dates, bank holidays, and submission cutoffs.
- Check compliance & consult your provider: Verify local laws; align tax and filing calendars.
- Update systems: Switch the pay frequency, timekeeping rules, accruals (e.g., PTO per period), and deductions.
- Communicate clearly: Share the why, the dates, how deductions work (esp. the 3-paycheck months), and FAQs.
- Dry run: Run a parallel/test cycle to catch issues before go-live.
Tips for a smooth transition
- Launch pack: Announcement + calendar + FAQs + contacts.
- Info sessions: Short Q&A for managers and employees.
- Multiple channels: Email, intranet, team huddles, and reminders near the first new payday.
- Feedback loop: Collect questions in the first two cycles and adjust documentation.
Top biweekly payroll tools and software
- Gusto: Great UX for small/midsize teams; automates taxes, filings, and direct deposits; easy biweekly setup.
- ADP: Scales from SMB to enterprise; strong compliance, reporting, and employee self-service.
- QuickBooks Payroll (or Paychex/Rippling): Robust integrations, automated tax handling, flexible pay schedules.
Pair your payroll with reliable time tracking and scheduling to keep biweekly runs clean and compliant.
Biweekly pay & workforce management
Biweekly pay works best when time, attendance, and schedules are tight. Shiftbase brings employee scheduling, time tracking, and absence management together—so your hours are accurate, overtime is correct, and your biweekly exports to payroll are painless. Try it free for 14 days.
