Payroll Calendar for 2024/2025

What Is a Payroll Calendar?

When doing payroll, companies typically adhere to a specific schedule, such as biweekly pay dates. Scheduling payroll dates in a calendar year before the beginning of the year helps employers budget properly and follow wage payment laws and regulations. Detailed calendars can incorporate actual pay dates and additional information such as pay period end dates, timesheet due dates, and the workdays covered by each pay period.

A payroll calendar can help you ensure that all payroll-related administration is completed on time and that payroll delays are minimized. Drawing up a calendar in advance helps identify when payroll process adjustments may be needed. Employers may also need to communicate the changes in advance to employees to set expectations for changes in pay dates.

Adjustments may be needed when reviewing the upcoming calendar, for example where one or more paydays fall on holidays. Depending on which day the final pay date of the annual period occurs, a payroll run may need to stretch into the following calendar year. Other adjustments may also be required, such as the three pay period months that may occur with a biweekly pay period schedule.

How Many Pay Periods Are in a Year?

When preparing a payroll calendar, you will determine how frequently your company will issue paychecks. Bi-weekly pay periods are the most common (according to the Bureau of Labor Statistics), but depending on pay frequency laws, business needs, and employee preferences, you may pay employees monthly, semimonthly, weekly, or even more frequently. Before finalizing a payroll calendar, employers should also check for applicable state or local laws or regulations to determine pay frequency restrictions.

Weekly Payroll Calendar

Processing weekly payroll carries a higher administrative burden but can also increase employee satisfaction and may be required for certain industries in specific states. If payroll is processed every week, year-round, this generally results in 52 pay periods, depending on the date of the last pay period, which may shift into the following year.

Biweekly Payroll Calendar

Employers using a biweekly pay schedule will pay employees on the same day, such as on Friday, every other week. Biweekly processing requires the flexibility to handle a third payroll run in some months. Generally, there are 26 biweekly pay periods in a year, but depending on how the days of the week fall, there could be 27 pay periods. In some months, the regular pay date will occur three times rather than two. As a result, the payroll calendar should be reviewed before the start of the year to allow for proper planning.

Semimonthly Payroll Calendar

When following a semimonthly payroll calendar, pay dates occur close to the same date, twice each month, such as the 15th and the 30th or 31st. As with other payroll calendar types, these payroll calendars may need to be adjusted when the expected pay date falls on a weekend or a holiday when banks are closed.

Monthly Payroll Calendar

Employees would receive twelve pay distributions once per month on a pre-determined date for monthly pay periods. This could be the last business day of the month or another date that works best after considering factors such as the payroll department's workload, employee preferences, company cash flow, and state pay frequency requirements. A payroll calendar can be used to identify the payroll date for each month, working around holidays and weekends.

Which Pay Period Type Is Right for Your Business?

The best pay period for your business depends on several factors, including applicable legal requirements, your company's specific needs, industry norms, and the type of employees you have. If you have a lot of nonexempt employees and overtime is a concern, a weekly or every-other-week pay period can make payroll tracking and overtime management much easier. On the other hand, if most of your employees are exempt, a semimonthly or monthly pay period might make the most sense. This is especially true if you want to reduce payroll costs and associated administrative tasks.

Your employees are also a key factor to consider. Hourly employees may prefer a weekly or every other week pay period because it gives them a consistent, frequent paycheck. While more frequent pay periods mean more payroll runs, a payroll calendar can help you stay on track and prepare for each pay date and payroll processing period. Salaried employees may prefer a semimonthly or monthly pay period.

A payroll calendar is helpful no matter which pay period you choose. It can help you:

• Track pay dates, frequencies, and deadlines
• Reduce the chance of errors
• Plan for cash flow

By choosing the right pay period and using a payroll calendar, you can meet your business needs while accommodating your employees' needs.

Scheduled Payroll With Paychex Can Make Business Simpler

A payroll calendar serves many purposes, from providing a visual tool that helps organize the payroll process to setting deadlines for timecard submission and communicating upcoming pay dates. A payroll calendar can also be helpful when making decisions about cash flow and operational expenditures. Scheduling pay dates with your payroll services provider can also improve planning and budgeting. When you know payroll dates for the year, you can also ensure that you have the necessary staffing and financial resources to get your paychecks out on time.