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Semi-Monthly vs Bi-Weekly Pay Cycles

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  • Semi-Monthly vs Bi-Weekly Pay Cycles

    California Based Company but Employees around the country.

    My company is thinking about changing our pay cycles from semi-monthly to bi-weekly. Can someone please tell me the advantages and disadvantages of changing? Have any of your recently transitioned to a new cycle? I would love to ask you a few questions and get some feeback.

  • #2
    Easier

    One thing I can tell you is that it is easier. There are income tax implications for employees, and the transition for them may be hard.

    I think they will appreciate the 26 pay periods instead of 24.

    Just make sure employees understand when the pay periods begin and end, and that they may want to re-evaluate the number of exemptions currently claimed because the paycheck gross will change from what it is currently.

    Challenges may be in restructuring salary in your payroll system for all of the exempt employees.

    Is your payroll internal or contracted?

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    • #3
      Questions

      We do our payroll internally.

      Comment


      • #4
        You should check to see which states you employ in, because some states require you to pay bi-weekly for certain employment situations...which means you may be out of compliance with your present system.

        another reason supporting the switch.
        This post is by Philip Gordon, a Massachusetts employment attorney (www.gordonllp.com).

        This post is NOT legal advice. It is for general/educational information purposes only. You should not rely on this post if you are making decisions, and it does not create an attorney-client relationship. This post may be considered "advertising" under the MA professional rules for attorneys.

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