In this article, we take a closer look at payroll schedules—making complex processes easy to understand and implement.
What is a payroll schedule?
A payroll schedule is the framework that defines how often a business pays employees and when each payday occurs. It pairs a recurring pay period (the window when hours are worked) with a specific pay date (when wages are paid). A clear schedule keeps payroll timely, employees confident, and compliance on track.
Why it matters
- Compliance: Consistent, on-time payments reduce wage-and-hour risk.
- Cash flow control: A predictable calendar helps you plan funding and avoid shortfalls.
- Employee satisfaction: Reliable paydays improve morale and trust.
- Budgeting & planning: Regular pay cycles make forecasting easier.
- Operational efficiency: A set cadence streamlines payroll prep, calculation, and review.
Common payroll schedules
- Weekly: Pay every week (52 paydays). Popular for hourly teams; more processing effort.
- Biweekly: Every two weeks (26 paydays; some years 27). Good balance of admin and frequency.
- Semi-monthly: Twice per month (e.g., 15th & last day = 24 paydays). Common for salaried roles.
- Monthly: Once per month (12 paydays). Lowest admin load; can strain employee cash flow.
At-a-glance comparison
| Schedule | Paydays / year | Best for | Pros | Watch outs |
|---|---|---|---|---|
| Weekly | 52 | Hourly, shift-based work | Frequent cash flow for staff; easy OT calc per workweek | Highest processing volume |
| Biweekly | 26 (sometimes 27) | Mixed hourly/salaried teams | Admin-friendly; predictable Fridays | “27th payday” years affect salary budgeting |
| Semi-monthly | 24 | Salaried employees | Aligns nicely with benefits & month-end accounting | OT calculations can be trickier for hourly workers |
| Monthly | 12 | Very small teams, commissions | Lowest admin effort | Employees wait longer; some states restrict frequency |
How to choose your schedule
- Business size & industry: Retail/field ops often prefer weekly or biweekly; office-based teams often use semi-monthly.
- Cash flow: Pick a cadence you can fund consistently.
- Workforce mix: Hourly + overtime favors weekly/biweekly (cleaner OT math aligned to a defined workweek).
- Legal requirements: Pay-frequency rules vary by jurisdiction; set a schedule that meets (or exceeds) local minimums.
Setting up a payroll schedule: step-by-step
Step 1: Define your foundations
- Workweek: Lock in a fixed 7-day workweek (e.g., Sun–Sat) for overtime calculations.
- Pay period: Choose period boundaries (e.g., biweekly Sun–Sat, or semi-monthly 1st–15th & 16th–EOM).
- Payday: Pick a consistent payday (e.g., every other Friday).
Step 2: Set operational cutoffs
- Timekeeping cutoff: Date/time when timesheets must be submitted.
- Manager approvals: Deadline for approvals and corrections.
- Payroll processing window: Your internal run date(s) for calculations & reviews.
- Funding day: When payroll is funded (ACH lead times, etc.).
Step 3: Build the calendar
Create a 12-month calendar with every pay period, cutoff, and payday. Include notes for holidays and how you’ll handle them (see FAQ). Share it with managers and employees.
Step 4: Communicate clearly
- Include the schedule in your onboarding and handbook.
- Post it on your intranet and in shared work areas.
- Send reminders ahead of cutoffs and any changes.
Step 5: Review & adjust
- Revisit annually (or after major growth/structure changes).
- Audit late approvals, off-cycle checks, and error rates; fix bottlenecks.
Policy snippet (copy/paste)
Payroll Schedule Policy: Our standard workweek is Sunday–Saturday. Non-exempt employees are paid on a biweekly schedule, with paydays every other Friday. Each pay period runs Sunday–Saturday. Timesheets are due by 10:00 a.m. Monday following the pay period; manager approvals are due by 3:00 p.m. the same day. If a payday falls on a bank holiday, pay will be issued on the preceding business day. Questions should be directed to Payroll.
Exceptions & practicalities
- Holidays/weekends: Decide whether to pay before or after bank holidays; state this in policy.
- Off-cycle runs: Use sparingly (e.g., corrections, terminations where required by law).
- 27th biweekly payday years: Plan ahead—either prorate salaried amounts or add one extra paycheck.
- Overtime: Always compute OT by defined workweek, regardless of pay period type.
- Final wages: Final-pay timing rules can differ from regular paydays; follow local law.
Communicating the schedule
Best practices
- New hires: Walk through pay periods, paydays, and how time is approved.
- All staff: Publish an annual payroll calendar and keep it up to date.
- FAQ: Maintain a simple Q&A on overtime, bonuses, leaves, and holiday pay timing.
Payroll schedule FAQ
What happens if payday falls on a holiday or weekend?
State your rule up front. Most employers pay on the prior business day if banks are closed.
Which is better—biweekly or semi-monthly?
Biweekly is simpler for hourly OT (aligned to a weekly workweek). Semi-monthly pairs neatly with benefits and month-end accounting for salaried staff. Mixed workforces often use biweekly.
How do we handle bonuses/commissions?
Pay them on the next regular payroll where possible; define cutoffs and any separate “bonus runs.”
Can we change our payroll schedule?
Yes—communicate well in advance, update policies, and ensure the new cadence meets local pay-frequency rules.
Make payroll scheduling easier with Shiftbase
Pairing your payroll schedule with accurate time tracking and clean approvals reduces errors and last-minute scrambles. Shiftbase helps you:
- Sync time & attendance with your chosen pay cadence
- Automate reminders for timesheet cutoffs and approvals
- Export clean payroll files for faster, safer runs
Try Shiftbase free for 14 days and put your payroll schedule on autopilot: Start your trial.
