Semimonthly Payroll

Semimonthly payroll differs from biweekly payroll, which runs every two weeks on a rolling cycle and produces 26 pay periods a year.

Employees paid a fixed annual salary typically receive the same gross amount each semimonthly paycheck. Pay for hourly employees may vary based on the number of hours worked during each pay period.

What semimonthly payroll means

Semimonthly payroll pays employees twice each month, typically on fixed dates such as the 15th and the last day of the month. When the pay periods run from the 1st through the 15th and from the 16th through month-end, the second period ranges from 13 to 16 days.

Several states cap the gap between semimonthly paydays at 16 days. Semimonthly payroll produces 24 pay periods a year; biweekly payroll produces 26, because biweekly runs on a rolling 14-day cycle instead of two fixed calendar dates.

Why semimonthly payroll matters

Semimonthly payroll matches monthly budgeting and month-end accounting close. Hourly payroll requires an additional consideration.

Semimonthly pay periods do not align with the fixed seven-day workweek used to calculate overtime under the Fair Labor Standards Act (FLSA). A workweek may cross two pay periods, so employers must continue tracking overtime by workweek.

Many businesses run semimonthly for salaried staff and weekly or biweekly for hourly staff. advantages of weekly payroll vs monthly payroll compares the tradeoffs across all four schedules in depth. Choosing a pay frequency is a fixed, regular commitment once set.

Choosing semimonthly payroll for your business

Semimonthly payroll tends to fit salaried-heavy or professional-services businesses best, since the fixed dates match how those businesses already budget and close their books. Hourly-heavy or high-turnover businesses more often choose weekly or biweekly instead, for the overtime-alignment reasons above. advantages of weekly payroll vs monthly payroll walks through that comparison.

Once you determine the schedule that fits your business, here's a sample calculation: a $52,000 annual salary divided across 24 semimonthly periods comes to $2,166.67 per paycheck.

‍SurePayroll® By Paychex supports semimonthly pay schedules alongside weekly, biweekly, and monthly.

Checking your state's pay frequency rules

Pay frequency rules vary by state — some states set a minimum pay frequency, and a few restrict semimonthly pay for certain classes of employees. Check your state's labor department or the U.S. Department of Labor's state payday requirements page before finalizing your pay schedule.

For example, several states require semimonthly pay as a floor for most employees and allow monthly pay only for exempt executive, administrative, or professional staff. In a different example, New York generally requires manual workers to be paid weekly.

DOL state payday requirements has the current rules for every state.

Related terms

• Biweekly payroll: pays every two weeks on a rolling cycle, producing 26 pay periods a year instead of semimonthly's 24 fixed-date periods.
• Gross pay: the total amount earned before taxes and deductions, calculated per pay period regardless of frequency.
• Pay period: the span of time a paycheck covers, whatever the frequency.