Pay Period
Definition, rules and examples

A pay period is the recurring stretch of time, such as one week or two weeks, for which an employer calculates and pays wages. It is different from the workweek, which is the period used to calculate federal overtime.
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Definition: A pay period is the recurring span of days for which an employee's wages are calculated and paid, such as weekly, biweekly, semimonthly, or monthly. Each pay period ends with a payday on which wages for that period are paid.

Choosing a pay period affects payroll workload, employee cash flow, and compliance. It also shapes how managers approve timecards and when timekeeping cutoffs fall. For hourly teams, the most important thing to remember is that the pay period and the overtime workweek are not the same thing.

Common pay period types

Pay periodPaychecks per yearGross pay per check on $52,000/yearTypical notes
Weekly52$1,000.00Matches the workweek; frequent processing
Biweekly26$2,000.00Two workweeks per period; some years have 27 paydays
Semimonthly24$2,166.67Fixed dates (e.g., 15th and last day); periods vary in length
Monthly12$4,333.33Least frequent; restricted for some workers in some states

A biweekly schedule produces 26 paydays in most years, but because a year is slightly longer than 52 weeks, some years contain 27. Budget for that extra payday in advance. See biweekly pay for more.

How a pay period works with overtime

The Department of Labor's Fact Sheet #23 defines the workweek as "a fixed and regularly recurring period of 168 hours" and states that "averaging of hours over two or more weeks is not permitted." That means overtime is calculated per workweek, regardless of how long the pay period is.

Worked example

Dana is a non-exempt employee paid $20.00 per hour on a biweekly schedule. In week 1 Dana works 45 hours; in week 2, 35 hours. The pay period total is 80 hours.

WorkweekHoursStraight timeOvertime (1.5x)Pay
Week 14540 x $20 = $800.005 x $30 = $150.00$950.00
Week 23535 x $20 = $700.000$700.00
Pay period80$1,650.00

If the employer had looked only at the 80-hour pay period total, it would have paid $1,600.00 and missed $50.00 in overtime premium. The time card calculator can help total hours by week.

Federal and state rules

  • Overtime timing. According to Fact Sheet #23, overtime pay earned in a particular workweek must be paid on the regular pay day for the pay period in which the wages were earned.
  • Records. The Department of Labor's recordkeeping fact sheet lists the "day and time the workweek begins," "total wages paid each pay period," and the "payment date and the pay period it covers" among required records.
  • State payday frequency. The Department of Labor's state payday requirements table (data as of January 1, 2023) shows how rules vary. For example, it notes that in California "wages, with some exceptions, must be paid at least twice during each calendar month"; New York lists a weekly payday for manual workers; Texas lists different frequencies depending on FLSA exemption status; and Florida is listed as having no regulations or not specified. The table advises consulting the relevant state labor office for official information.

How to choose a pay period

  • Start with state law. Confirm which frequencies are allowed for each type of worker in each state where you operate.
  • Consider your workforce. Hourly employees often prefer more frequent pay. Biweekly is a common balance between employee preference and processing effort.
  • Align timekeeping cutoffs. Set a timecard approval deadline far enough before payday to fix errors.
  • Keep the workweek fixed. Whatever pay period you choose, define one workweek and keep it consistent.
  • Communicate the calendar. Publish pay dates and cutoffs for the year so employees know when to expect pay.

Common mistakes

  • Calculating overtime by pay period. Overtime is per workweek.
  • Semimonthly overtime confusion. Semimonthly periods do not line up with workweeks, so a workweek can span two pay periods. Overtime for that week must still be calculated correctly and paid on time.
  • Changing pay frequency without checking state rules. Some states regulate how and when paydays can change, so confirm requirements and tell employees well in advance.
  • Late final paychecks. Final pay deadlines are set by state law and may be shorter than the regular pay cycle.
  • Forgetting the 27th biweekly payday. This affects salaried per-check amounts and budgets.

Pay period vs. workweek vs. payday

TermWhat it meansWhy it matters
WorkweekA fixed, recurring 168-hour period chosen by the employerFederal overtime is calculated per workweek
Pay periodThe span of days covered by one paycheckDetermines which hours are paid on which payday
PaydayThe date wages for a pay period are paidState laws set how soon after the period ends pay is due
Timecard cutoffInternal deadline to approve hoursLeaves time to correct errors before payroll runs

Keeping these four dates straight in your payroll calendar prevents most timing problems. For example, a business with a Sunday-to-Saturday workweek, a biweekly pay period, and a Friday payday might set the timecard cutoff for Monday at noon, giving managers time to review exceptions such as missed punches and unapproved overtime before the payroll file is sent.

When you change any of these dates, such as moving the workweek start, do it deliberately and document the change. Make the change for a genuine business reason, not to reduce overtime, and review the transition week carefully so no hours are dropped or double-counted.

How EZTime helps

EZTime lets you close each pay period with confidence. Hours come in from a GPS mobile time clock with geofencing, NFC tags, a tablet kiosk, or biometric clocks; overtime and break alerts flag issues during the week; and timecard corrections are logged with an audit trail so you can approve hours before the cutoff. PTO and absence management keeps leave separate from worked time. When the period ends, payroll-ready Excel and PDF exports work with any payroll software, organized so overtime can be reviewed by workweek. EZTime does not run payroll itself. Pricing starts at $2 per employee per month with a 14-day trial. See the attendance clock or pricing.

This is general information, not legal advice.

Frequently asked questions

A pay period is how often you pay employees. A workweek is the fixed 168-hour period used to calculate FLSA overtime. A biweekly pay period contains two workweeks, and overtime is calculated separately for each one.

Weekly (52 paychecks a year), biweekly (26), semimonthly (24), and monthly (12). The right choice depends on your state’s payday rules, your workforce, and payroll processing costs.

Pay frequency is set mainly by state law. The Department of Labor publishes a state-by-state table of payday requirements, and some states set different frequencies for different types of workers.

The Department of Labor says overtime earned in a particular workweek must generally be paid on the regular payday for the pay period in which the wages were earned.

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