A pay schedule with 24 pay periods per year, typically processed on the 1st and 15th of each month or the 15th and last day. Common in salaried professional environments.
Why Semi-Monthly Payroll matters for employers
Semi-monthly payroll is popular among salaried white-collar workforces because each paycheck represents exactly half a month of pay, making budgeting and benefit accrual calculations straightforward. However, because the number of days in each pay period varies slightly and some months have payroll dates near weekends or holidays, semi-monthly payroll requires careful scheduling to ensure on-time payment as required by state pay frequency laws.
Semi-monthly differs from bi-weekly payroll in an important way: bi-weekly results in 26 pay periods, while semi-monthly results in exactly 24. This affects how annual salary is divided per paycheck and how overtime weeks align with pay periods, since workweeks often span two semi-monthly pay periods.
How BEG handles Semi-Monthly Payroll for clients
BEG Managed Payroll handles Semi-Monthly Payroll as part of a fully managed payroll service at $25-$45 per employee per month. Clients do not need to track compliance rules, filing deadlines, or calculation methods related to Semi-Monthly Payroll on their own. Everything is included. Learn about BEG Managed Payroll.
Frequently asked questions
Do employers have to manage Semi-Monthly Payroll themselves?
No. A managed payroll provider handles Semi-Monthly Payroll as part of full-service payroll. BEG manages this for clients at $25-$45 PEPM with no system migration required.
What happens if Semi-Monthly Payroll is handled incorrectly?
Errors related to Semi-Monthly Payroll can trigger IRS penalties, state agency assessments, or employee disputes. Catching and correcting errors before filing is far less costly than after-the-fact corrections.
How does BEG handle Semi-Monthly Payroll for managed payroll clients?
BEG tracks, calculates, and remits everything related to Semi-Monthly Payroll as part of fully managed payroll. Clients do not need to monitor compliance -- that is included in the service at $25-$45 PEPM.
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About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
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