Last Updated on July 29, 2025
Running payroll isn’t just a routine task. The schedule you choose, whether weekly, biweekly, semi-monthly, or monthly, can impact everything from cash flow and compliance to how employees view your company.
So how do you decide how often to pay your employees? This guide walks through the most common pay frequencies, plus four critical factors that every employer should consider before making a decision.
Payroll frequency might seem like an operational detail, but it has deeper implications for:
Cash flow — how often money is going out
Compliance — staying on the right side of federal and state laws
Employee retention — predictable pay supports employee satisfaction
Administrative cost — more pay runs typically mean more time and money
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Best for: Hourly employees, overtime-heavy industries like healthcare, retail, and homecare
Pros: Employees paid quickly, helps manage FLSA overtime compliance
Cons: 52 pay runs per year = higher administrative costs
Best for: Employers looking for balance
Pros: Only 26 payroll runs per year, predictable cycles, supports both hourly and salaried employees
Cons: Some months have a third paycheck, which can complicate budgeting
Best for: Salaried employees and companies with stable schedules
Pros: Aligns with benefit deductions, fewer payroll runs than biweekly
Cons: Confusion around weekends and holidays, inconsistent intervals
Best for: Stable teams, low employee turnover
Pros: Lowest administrative cost
Cons: Employees may struggle to budget one paycheck across 30+ days, which can affect morale
If you're considering monthly pay, make sure you have strong HR Compliance Services and communication strategies in place.
Quarterly pay is rare and typically only used for owners or very small teams.
On-demand pay lets employees access earnings before payday and is gaining traction in industries with high turnover or wage sensitivity.
The Fair Labor Standards Act (FLSA) doesn’t set specific pay frequency rules, but wages must be paid on the “regular payday.” The real requirements come from the state level and they vary.
For example, New York mandates that manual workers be paid weekly, while other states permit monthly pay for most classifications.
Also, if you plan to change your payroll frequency, some states require advance written notice. Even if it's not required, giving notice builds trust with your team.
Benchmarking matters. If competitors in your industry pay more frequently, you risk losing talent by offering fewer paydays.
According to the Bureau of Labor Statistics:
70.6% of construction workers are paid weekly
52.9% in education and healthcare are paid biweekly
35.9% in information services are paid semi-monthly
17.6% in finance are paid monthly
Use this data to stay competitive.
Exempt salaried employees (not eligible for overtime) are often paid semi-monthly or monthly. Nonexempt hourly workers (eligible for overtime) are more frequently paid weekly or biweekly to simplify overtime tracking.
If your workforce is mixed, it’s OK to run different pay frequencies for different employee groups, but make sure your payroll system supports it without errors.
The frequency of payroll directly affects your costs:
| Frequency | Pay Runs per Year |
|---|---|
| Weekly | 52 |
| Biweekly | 26 |
| Semi-monthly | 24 |
| Monthly | 12 |
While fewer runs can save money, too infrequent can lead to low morale or retention issues. The key is to balance cost-efficiency with employee satisfaction.
If your business has busy and slow seasons, choose a payroll frequency that can handle both. Will your schedule still work when you double your team during the holidays? What about during a summer slowdown?
Modern payroll systems should scale with your business. Whether you need to add new employees or adjust pay cycles, the right tools make it seamless.
Once you pick a payroll frequency, stick with it unless there’s a strong business reason to change. Predictable pay schedules not only satisfy compliance requirements but also build employee trust.
Before you decide, run some “what-if” models based on your team size, state laws, and projected growth. Think about your team’s financial wellness just as much as your bottom line.
©2025 - Content on this blog is intended to provide helpful, general information. Because laws and regulations evolve, please consult an HR professional or legal expert for guidance specific to your situation.