Now that we are close to the end of the year, you may have wondered how many times you have been paid for your services this year. While you may be unable to justify those earnings with your initial expectations, you can still plan for the year 2025 by knowing the possibilities of higher pay periods in the coming year.
It is important to know that the number of pay periods in a year varies depending on the pay frequency, all of which shall be discussed in this post.
What Are Pay Periods?
Pay periods can be broken down with this definition: pay periods are specific intervals of time during which employees work and earn wages. These are followed by payment from their employers. So, if you are working in the hospitality industry, education, transportation, or other industry, your pay frequency would determine the number of pay periods you get in one year.
Types of Pay Period
We have the weekly pay periods; the bi-weekly pay periods; semi-monthly pay periods; monthly pay periods; monthly pay periods; quarterly pay periods, and annually pay periods.
- Weekly pay periods: In this category, employees receive their payment at the end of every week. Their pay comes on a weekly basis.
- Bi-weekly weekly pay periods: Employees are paid once every two weeks, every 14 days.
- Semi-monthly pay periods: In this group of pay periods, employees are paid twice a month, usually at the beginning and at the middle of each month.
- Monthly pay periods: Employees who are in this category are those we call the salary earners; they are paid once a month.
- Quarterly pay periods: Employees who are in this category are paid every three months.
- Annually pay periods: Employees are paid once in a year in this category.
There are things that make up a pay period. They are pay date, pay period start date, pay period end date, and pay frequency.
Pay Periods Components
- Pay date: The actual date employees receive payment is called a pay date.
- Pay period start date: This is referred to as the beginning of the pay period.
- Pay period end date: This is the end of the pay period.
- Pay frequency: This is a representation of how frequent employees receive payments or are paid.
Importance of Pay Period
Employee expectations: When a payment schedule is consistent, this helps an employee to properly plan his budget and meet his financial obligations.
Pay periods are also effective in processing payroll as this enhances payroll management.This is a means to properly manage cash flow, as well as enhance accurate pay periods and correct tax withholding.
Factors Influencing Pay Frequency
These are some of the factors that influence pay frequency: industry norms, labour laws and regulations, company policies, payroll processing, and employee benefits and compensation packages.
