Biweekly Pay Explained: A Small Business Owner's Guide to Biweekly Payroll

As a small business owner, you need to choose the right payroll schedule to make sure you have great cash flow, team morale, and operational efficiency. And especially if you’re managing hourly workers or tight margins, getting payroll right can make or break your operations. One of the most common (and often misunderstood) pay frequencies? Biweekly pay.

This guide breaks down everything you need to know about biweekly pay—from what it means, to how it works in real life, to how to set up a biweekly pay schedule for 2025. 

TL;DR: Biweekly pay and what it means for small business owners

• Biweekly pay means you’re paying employees every two weeks (every 14 days), typically equalling 26 pay periods per year.
• It’s different from semi-monthly pay, which is tied to calendar dates and only has 24 pay periods.
• Biweekly payroll is especially helpful for hourly teams. Overtime is easier to calculate and the schedule aligns with standard workweeks.
• In 2025, most businesses will have 26 biweekly pay periods but depending on how the calendar falls, some may have 27.
• To calculate biweekly pay:‍
  
  • Salaried employees: Annual salary ÷ 26
  • Hourly employees: Hourly wage × hours worked in a two-week period

• Use tools like a biweekly pay calculator or payroll software (e.g., Homebase, Gusto) to simplify the process and avoid costly errors.
• Watch out for months with three payrolls, and budget accordingly.
• To implement biweekly pay for your team: Make sure you communicate changes clearly, update contracts, and choose a system that supports biweekly scheduling and tax compliance.
• Bottom line: With the right payroll tools and implementation strategy, biweekly pay is a reliable, employee-friendly payroll strategy that fits many small businesses.

What is biweekly pay?

Biweekly pay means employees are paid once every two weeks, typically on the same day of the week—for example, every other Friday (which tends to be the most common day employees are paid). That adds up to 26 pay periods per year, or 27 in a leap year, depending on your payroll calendar.

If you're wondering, “Does biweekly mean you get paid for 2 weeks?” Yes, it does. Employees are paid for the past two weeks of work each payday.

But let’s clear up some common confusion:

• Biweekly means once every 14 days—not twice a week.
• Semiweekly (also called semi-weekly) is the one that means twice a week—usually every Monday and Thursday, or similar.
• So when someone asks, “Is biweekly every 2 weeks or twice a week?” The answer is: every two weeks.

Understanding this distinction is important for small businesses. If you're setting up payroll, mixing up biweekly and semiweekly payments could mean overpaying your team (which digs into your bottom line) or throwing your accounting off schedule (which is just an operational hassle).

In short, biweekly pay refers to a two-week pay cycle, where each paycheck reflects 14 days of work. Businesses commonly use biweekly pay for hourly or shift-based roles—biweekly pay also happens to be one of the most widely accepted payroll schedules in the U.S.

Biweekly vs. semi-monthly payroll: What’s the difference?

Whether your business pays employees biweekly or semi-monthly, you need to pay your employees regularly and cover roughly two weeks of work per paycheck. You need to be clear about which pay schedule you’re choosing—biweekly or semi-monthly payroll —as it can greatly impact how you run payroll, manage cash flow, and stay compliant.

Here’s the breakdown:

• Biweekly payroll means you run payroll every 14 days—usually on the same day of the week, like every other Friday. This means you’ll run payroll 26 pay periods per year, or 27 in a leap year.
• Semi-monthly payroll pays employees twice per month, typically on set calendar dates like the 15th and last day of the month. That adds up to 24 pay periods per year—no matter what year it is.

Why this decision matters: While both methods are legal and commonly used, they don’t operate the same behind the scenes. For small business owners, the choice between biweekly and semi-monthly pay can affect:

• Payroll processing workload: Biweekly pay means more frequent pay runs (26 vs. 24), but with a predictable schedule. In contrast, semi-monthly pay may be trickier when paydays fall on weekends or holidays.
• Overtime calculations: If you have hourly workers, biweekly is often simpler for tracking time and calculating overtime.
• Cash flow planning: Semi-monthly payroll creates a steady rhythm. Biweekly can result in months where you run payroll three times—something to plan for.

There’s no one-size-fits-all solution. The best choice depends on your team, your payroll software, and how hands-on you want to be. In the next section, we’ll walk through how biweekly pay actually works in practice, so you can see if it’s the right fit for your business.

How biweekly pay works in practice

With biweekly payroll, you run payroll every two weeks on the same day—often a Friday. Employees are paid for the past two weeks of work that they’ve done. With this payroll schedule, you’ll enjoy a consistent, predictable payroll rhythm for your team.

Example of a biweekly pay schedule

Let’s say you choose to pay your team every other Friday. If your first pay date of the year is Friday, January 5, 2025, your schedule might look like this:

• Jan 5
• Jan 19
• Feb 2
• Feb 16
• Mar 1

…and so on, through 26 pay periods for the year (or 27 if it’s a leap year and the calendar lines up).

This kind of schedule is especially common in retail, restaurants, healthcare, construction, and other service-based businesses, where employees often track hours weekly and overtime is more common.

Special payroll considerations for biweekly pay

1. Overtime is easier to track

One reason biweekly pay is popular for hourly teams is that it aligns with a standard 40-hour workweek. That makes overtime calculations more straightforward—you’re looking at two clean weeks of timecards, without needing to split or estimate hours mid-period.

2. Watch for holiday weeks

If payday falls on a bank holiday, you’ll need to adjust your payroll run to make sure your team still gets paid on time. Some payroll systems do this automatically, but if you’re running it manually, build in a buffer.

3. Prepare for “three paycheck” months

Here’s the catch: Biweekly pay means two months each year will have three paydays instead of two. It’s not a budgeting issue for employees (they love it)—but it can catch employers off guard. Make sure your cash flow planning accounts for these months, especially if you’re a smaller operation.

How many biweekly pay periods are there in 2025?

In 2025, there are 26 biweekly pay periods—which is the standard for a non-leap year. But depending on your payroll start date and schedule, some employers may have 27 pay periods if their first payday falls on January 1st or 2nd and they pay every other week.

Here’s how it works:

A biweekly schedule means employees are paid every 14 days. Since there are 365 days in a year, and 14 divides into 365 just over 26 times, you’ll typically process payroll 26 times per year. That’s 52 weeks ÷ 2.

But when the calendar lines up just right—like if your first payday is early in January and your last one lands on December 31—you could end up with an extra (27th) payroll cycle.

Sample biweekly pay schedule for 2025:

If your first payday is Friday, January 3, 2025, here’s what a biweekly schedule might look like:

• Jan 3
• Jan 17
• Jan 31
• Feb 14
• Feb 28
• Mar 14
• Mar 28
• …continuing every other Friday through December 12 or 26

If you pay every other Friday and your last pay date of the year lands on December 26, congratulations—you’ve hit 26 pay periods for the year.

Why this matters for small business payroll: You’ll want to budget in advance—especially if you run payroll manually or are tight on cash flow. Months with a “bonus” third paycheck can impact your outflows, so plan ahead to avoid surprises. This is also crucial if you’re calculating annual salaries based on biweekly pay (we’ll get into that next).

How to calculate biweekly pay (with or without a calculator)

If you’ve chosen a biweekly payroll schedule, your next step is making sure you’re paying your team accurately—whether you’re working with annual salaries or hourly wages. The good news? Once you understand the math, it’s simple.

You can either plug numbers into a biweekly pay calculator or run the numbers manually. Here’s how. 

How to calculate biweekly pay from annual salary

To convert an annual salary to a biweekly pay amount, just divide by 26 (the number of biweekly pay periods in a standard year).

• Formula: Annual salary ÷ 26 = Biweekly gross pay
• Example: If you pay a salaried employee $65,000/year:

$65,000 ÷ 26 = $2,500 biweekly pay before taxes and deductions

This is the simplest method to ensure consistency when you’re budgeting and processing payroll for salaried employees.

How to calculate biweekly pay from hourly wages

For hourly workers, take their hourly wage and multiply it  by the number of hours worked over a two-week period.

• Formula: Hourly wage × hours worked in two weeks = Biweekly gross pay
• Example: If an employee earns $20/hour and works 40 hours per week:

$20 × 80 = $1,600 biweekly pay

Don’t forget to include overtime when applicable—and keep accurate time records for each pay period. 

Need to figure out how to calculate monthly income from biweekly pay? Just multiply the biweekly pay amount by 26, then divide by 12.

Tools for calculating biweekly pay

If you’d rather avoid the math, there are plenty of tools to help:

• Biweekly pay calculators: Free online calculators let you quickly estimate gross pay based on salary or hourly wage
• Pay period calculators: Help map out your biweekly pay schedule across the year
• Payroll software platforms: Tools like Homebase, Gusto, QuickBooks Payroll, and ADP handle all the calculations for you, including overtime, deductions, and taxes

Most payroll platforms (including Homebase) also integrate with your accounting software and HR systems, so you’re not entering data in multiple places or risking errors. Many also offer automated reporting, employee self-service portals, and compliance alerts.

Accurate payroll starts with the right numbers. Whether you prefer to crunch them yourself or use software, understanding how to calculate biweekly pay helps you stay compliant, organized, and in control of your business finances.

Advantages and disadvantages of biweekly pay for small businesses

Choosing a biweekly payroll schedule has clear upsides—but also a few quirks to plan for. Here’s what to consider before committing.

Advantages of biweekly pay

• Easier overtime calculations: Because biweekly pay aligns with a standard 40-hour workweek, it makes tracking time and calculating overtime straightforward—especially for hourly employees. No need to split weeks across pay periods, which can get messy with semi-monthly schedules.
• Predictable payroll processing: Paying every other week—on the same day—creates a reliable rhythm for your team and your back office. It’s easier to automate, build into workflows, and plan ahead for.
• Better fit for hourly teams: If your team works variable hours (like in retail, hospitality, or home services), biweekly pay matches how they work—and it’s generally preferred over semi-monthly, which can feel inconsistent.
• Easier software integration: Most payroll platforms are built to support biweekly pay schedules by default. This means less customization, fewer errors, and smoother syncing with your HR and accounting tools.

Disadvantages of biweekly pay

• Three-paycheck months: A biweekly schedule means you’ll have two months each year where payroll runs three times instead of two. It doesn’t affect employee pay over the year, but it can throw off your cash flow planning if you’re not prepared.
• Slightly more admin work: Biweekly means 26 pay runs per year, compared to 24 with a semi-monthly schedule. That’s two extra payrolls to process annually—so if you’re doing it manually, it adds a bit more work (and potentially cost, if your payroll provider charges per run).

Bottom line: Biweekly pay is one of the most common payroll schedules for a reason—but it works best when you know what to expect and plan around the details.

How to implement biweekly payroll effectively

Switching to or starting with a biweekly payroll schedule can be smooth—as long as you set it up the right way. Here’s how to transition to a biweekly pay schedule as smoothly as possible:

1. Communicate clearly with your team

Before making any changes to your company’s payroll schedule, make sure you loop your employees in early. This gives your staff a chance to prepare for any payroll changes that may impact their lives. Here’s how to share the news with your team:

• Explain what biweekly pay means (they will be paid every two weeks, not twice a month)
• Let them know the first new payday date and how the change affects their pay frequency
• Give your team plenty of notice—ideally one to two full pay cycles in advance (that means 2-4 weeks)

2. Update employee contracts or offer letters

You should include payroll schedules in employment agreements. If you're switching to biweekly pay:

• Review existing contracts and onboarding documents
• Change any language related to pay frequency to reflect the new schedule
• Have employees acknowledge the update—either through a formal sign-off or digital record

This helps protect you legally and helps avoid confusion down the road.

3. Choose payroll software that supports biweekly scheduling

Still running payroll manually? Good news—switching to payroll software will save you time and reduce the risk of costly mistakes. Look for platforms that:

• Support biweekly pay schedules out of the box
• Automate tax filings and deductions
• Handle hourly, salaried, and mixed employee types
• Integrate with time tracking and accounting tools

Here are some great options: Homebase, Gusto, QuickBooks Payroll, and ADP make it easy to automate biweekly pay cycles, calculate taxes, and help you stay compliant with labor laws.

Frequently asked questions about biweekly pay

Does biweekly mean you get paid for 2 weeks?

Yes. Biweekly pay means your employees are paid for two weeks of work with each paycheck. This pay cycle is ideal for hourly teams and businesses that track time weekly.

What is biweekly pay?

Biweekly pay is a payroll schedule where employees receive paychecks every two weeks, usually on the same day of the week (like every other Friday). This results in 26 pay periods per year, or sometimes 27 in leap years.

Is biweekly every 14 days?

Yes. Biweekly payroll runs every 14 days, no matter what. Unlike semi-monthly pay, which sticks to specific dates (like the 15th and 30th), biweekly pay always sticks to the same day of the week.

Is biweekly every 2 weeks or twice a week?

Biweekly means every two weeks—not twice a week. That would be semiweekly, which is extremely uncommon (and confusing) for payroll. If you're paying your team every other week, you're using a biweekly pay schedule.

Final thoughts on biweekly pay

Setting up a biweekly payroll schedule is about creating consistency, reducing errors, and keeping your team happy and paid on time. If you’re using a biweekly pay schedule in 2025, plan your payroll calendar early to avoid missed pay runs or three-paycheck surprises.

With the right planning, tools, and communication, biweekly pay can simplify everything from overtime tracking to budgeting and compliance.

The key? Clarity and preparation. When you know what to expect—like how many biweekly pay periods are in 2025, how to calculate wages, and what tools to use—you can run payroll without the usual stress.

Ready to take the next step?

• Try a payroll tool like Homebase to automate your biweekly payroll
• Schedule a consultation with a payroll expert to make sure you’re set up for success

Whatever you choose, don’t wait until payday to figure it out—plan ahead, get the right support, and keep your business running smoothly.