.png)
Learn how biweekly payroll works, get biweekly payroll explained, and explore payroll schedules to streamline your HR and compliance in 2025.
.png)
Payroll isn’t just a back-office task—it’s the foundation of employee trust and financial stability. For HR professionals and business owners alike, choosing the right payroll schedule is a critical decision. One of the most popular options in the U.S. is biweekly payroll, and for good reason.
But how does biweekly payroll work, exactly? What makes it different from other payroll schedules? And how can your organization stay compliant while streamlining the process?
This comprehensive guide breaks it all down: the mechanics of biweekly payroll, its advantages and drawbacks, compliance tips, and how an HRIS can help you manage it all with ease.
Let’s start with the basics. Biweekly payroll means that employees are paid once every two weeks, typically on the same day of the week, such as every other Friday. This results in 26 pay periods in a calendar year (or 27 in some years due to calendar shifts).
Unlike semi-monthly payroll, which follows fixed calendar dates (e.g., 15th and 30th), biweekly payroll aligns with weekdays, providing consistent and predictable schedules for both employees and payroll administrators.
This structure is particularly advantageous for calculating overtime, especially in industries with hourly workers or fluctuating shifts.
Here’s how the biweekly process functions from start to finish:
Note: May in this example includes three pay periods, which can affect benefit deductions and budgeting if not planned for.
Biweekly payroll has become the go-to standard for many U.S. companies. Here’s why:
Biweekly schedules line up neatly with a standard 40-hour workweek. This makes it easy to calculate regular pay, overtime, and shift differentials.
With only 26 payroll runs per year (compared to 52 for weekly schedules), biweekly payroll reduces the administrative burden and costs associated with frequent processing.
Getting paid every other Friday allows employees to better plan around rent, bills, and savings goals. This can reduce financial stress and improve satisfaction.
Because overtime is calculated weekly under FLSA rules, biweekly payroll supports consistent and compliant tracking across two-week spans.
It’s widely adopted across industries, especially in retail, hospitality, healthcare, and manufacturing, making employee expectations easier to manage.
Despite its popularity, biweekly payroll does come with a few drawbacks, especially if not managed properly:
Because some months have three pay periods, employer budgeting can become inconsistent. Companies must account for the “extra” payroll cycle when forecasting.
Most benefit premiums (health insurance, retirement, etc.) are structured monthly. With biweekly payroll, employers need to either split premiums over 26 paychecks or skip deductions in months with three pay periods.
For teams that include both salaried and hourly staff, managing different payroll schedules (biweekly vs. semi-monthly) can lead to confusion or errors.
If a pay date falls on a federal holiday, adjustments need to be made—usually processing a day earlier, which requires proactive scheduling and communication.
Employers using biweekly payroll must remain compliant with federal and state labor laws. Here's what to watch out for:
Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid 1.5x the hourly rate for hours worked over 40 in a workweek. A biweekly schedule should never result in averaging hours across weeks to avoid overtime.
Some states mandate minimum pay frequencies, especially for certain job types:
Employers must ensure their payroll schedule complies with all relevant state laws based on location and employee classification.
Your tax deposit schedule may be affected by how often you pay employees. Biweekly payroll generally leads to more frequent tax payments (semiweekly or monthly deposits, depending on your tax liability).
Tip: Use your HRIS platform to track pay frequencies, maintain accurate records, and receive compliance alerts.
For mid-market companies looking to manage biweekly payroll efficiently while supporting broader HR functions like onboarding, benefits administration, compliance, and performance management, choosing the right payroll platform is crucial.
Here are some leading HR-centric payroll systems designed specifically for growing businesses:
Gusto offers a user-friendly payroll and HR platform tailored for small to mid-sized businesses. It simplifies biweekly payroll management with automated tax filings, direct deposits, benefits integration, and employee self-service portals. Gusto also provides compliance support, making it ideal for companies scaling rapidly.
Paychex is a trusted name in payroll and HR services, offering scalable solutions for businesses of all sizes. Their mid-market products, like Paychex Flex®, combine powerful payroll automation with benefits management, employee onboarding, time tracking, and retirement planning—all within a single platform.
iSolved is a robust HCM (Human Capital Management) platform known for its strength in payroll, HR, benefits, and workforce management. It is particularly strong for companies needing advanced tracking for biweekly overtime, leave accruals, and ACA compliance.
Rippling seamlessly combines payroll, HR, IT, and employee management into one modern system. It’s especially useful for companies that need fast biweekly processing, benefits automation, compliance management, and the ability to onboard remote teams efficiently.
Paylocity provides a cloud-based HR and payroll software suite that’s particularly strong in automating biweekly payroll cycles. It also offers tools for employee engagement, performance management, compliance reporting, and advanced workforce analytics, making it ideal for growing HR teams.
Paycom is an end-to-end HCM platform where employees manage their own HR data through self-service functionality. It automates biweekly payroll processing, tax filings, and benefit deductions while integrating with modules for talent acquisition, onboarding, and learning management.
Designed with HR leaders in mind, Paycor offers intuitive payroll solutions, HRIS features, compliance support, and workforce analytics. Its biweekly payroll processing is tightly integrated with robust talent management tools, helping mid-market businesses streamline their entire HR operation from one platform.
Choose biweekly payroll if:
Avoid biweekly payroll if your team is primarily salaried or your benefits and deductions are tightly structured around monthly accounting.
Understanding how biweekly payroll works gives HR teams the clarity they need to choose the best payroll schedule for their workforce. While it offers flexibility and predictability, especially for hourly staff, it also comes with planning challenges that need to be addressed proactively.
By choosing a modern, HR-focused payroll platform like Gusto, Paychex, iSolved, Rippling, Paylocity, Paycom, or Paycor, businesses can automate complex processes, stay compliant, and create a seamless experience for both HR teams and employees.
Still deciding which HR and Payroll platform is the right fit for your mid-market company?
Outsail provides free, unbiased consultations to help growing businesses navigate their options. Whether you’re managing biweekly payroll, need better benefits integration, or want to strengthen compliance workflows, we’ll match you with the best vendor for your specific needs.
Schedule your free Outsail consultation today and simplify your HR and payroll operations in 2025 and beyond!
