A bi-weekly payroll schedule involves disbursing payments to employees twice a month. To determine the gross pay for each period, the annual salary is divided by 24 (the number of pay periods in a year). The resulting figure represents the employee’s gross compensation for each of the two monthly paychecks. As an example, consider an employee with an annual salary of $60,000. The calculation would be $60,000 / 24 = $2,500 per pay period. This $2,500 figure is the gross wages before deductions are applied.
Implementing this payment frequency can contribute to employee financial stability. The regular disbursements facilitate budgeting and financial planning. From a historical perspective, bi-weekly pay schedules became prevalent as businesses sought simpler and more predictable payroll processes compared to less frequent options. This method strikes a balance between administrative efficiency for the employer and consistent income for the employee.
