Learn the difference between Semi-Monthly and Bi-weekly payroll

Bi-weekly and Semi-monthly payrolls are the two most popular payroll options available for people, however, the concept of these payrolls often tends to be confusing. A lot of people are unable to find the difference between the two. 

This is the reason why we have prepared this blog and we will tell you about semi monthly vs bi weekly. So, if you are interested in the same we would suggest you go through this blog till the end. 

Before we move ahead, it is important to note down the most common payroll frequencies available for people, that are: 

• Weekly: Once every week
• Monthly: Once per month
• Bi-Weekly: Once every other week
• Semi-Monthly: Twice per month

Semi-Monthly Payroll – What does it mean?

Semi-monthly refers to the payment which is made and received twice a month, hence you will find a total of 24 paychecks a year if you are getting your salary in semi-monthly mode. Generally, it happens on fixed days or dates like the 1st, 15th, 30th or 31st of the month. 

Bi-Weekly Payroll – What Does It Mean?

Now, we will get to the next option of getting paid which is biweekly. It is a pay when employees are getting paid every other day on a fixed day. For example, if a company has decided to pay on Wednesdays, then the employees will be paid every week on Wednesdays. This way, you would be getting more paychecks than in semi-monthly payroll. 

Bi-Weekly Payroll vs Semi-Monthly Payroll 

Now, that you have an idea of what these two payrolls mean, we will explore the differences between the two.

Choosing between these two payrolls would be quite difficult for people but you can make your decision by looking at the factors we mention here to highlight the differences between the two. 

1. Payday 

Bi-weekly payroll ensures that employees receive their wages the same day every two weeks, whereas on the other hand, semi-monthly means that the day of the week can change. Semi-monthly goes off of two dates in the month which in most cases is the 1st and 15th. 

1. Quantity of the Paycheck 

In semi-monthly frequencies, payroll is processed in less time than bi-weekly so employees’ paychecks are larger whereas bi-weekly paychecks are smaller. However, it does not make much difference as the employees will get two extra paychecks to make up for it. 

1. Paycheck amounts per year 

As a result of the pay frequency, the difference between bi-weekly and semimonthly paychecks also exists. For bi-weekly, the number of paychecks is 26 whereas for semi-monthly it is 24 so if the number affects you then it is a major difference for you or else, this pointer does not affects anything. 

These are major differences that exist between the two options to get paid and we hope that these pointers have been able to clear both options for you. Also, we believe through this blog semi monthly vs bi-weekly is quite clear and you have been able to decide which option you should opt for to get your salary. 

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