A common payroll schedule involves disbursing wages to employees every two weeks. This arrangement results in 26 pay periods over the course of a year. For salaried employees, the annual salary is typically divided by 26 to determine the gross pay for each pay period. For hourly employees, the pay is calculated based on the number of hours worked within the two-week timeframe, multiplied by their hourly rate.
This pay frequency offers advantages for both employers and employees. It allows for more consistent budgeting for employees, as they receive income more frequently than with monthly pay schedules. For employers, it can streamline payroll processing compared to weekly schedules, while still providing employees with relatively frequent access to their earnings. Historically, this pay structure became prevalent as businesses sought a balance between the administrative burden of frequent payroll and the employee desire for regular income.
