So why is payroll paid bi-weekly, anyway?

image shot at Aro Ha

In the United States, it's common for employers to pay their employees on a biweekly schedule, meaning they receive their paychecks every two weeks. While this may seem like an arbitrary choice, there are actually several reasons why most American employers pay wages biweekly.

One of the main reasons for biweekly pay is that it's easier for employers to manage their cash flow. Payroll is typically one of the largest expenses for a business, and paying employees every week would require a lot of financial resources. By spacing out pay periods to every two weeks, employers can ensure that they have enough cash on hand to cover their other expenses.

In addition, biweekly pay is easier to manage from an administrative standpoint. With a weekly pay schedule, employers would need to process payroll four times as often, which could be time-consuming and error-prone. Biweekly pay allows for more streamlined payroll processing, which reduces the risk of mistakes and saves time.

Finally, biweekly pay can help employers comply with labor laws. In the United States, many states require employers to pay their employees at least twice a month, and biweekly pay meets this requirement. It also helps employers stay on top of tax filings and other regulatory requirements.

While some employers may choose to pay their employees on a different schedule, such as monthly or weekly, biweekly pay has become the norm in the United States for a variety of reasons. By spacing out pay periods, employers can manage their finances more effectively. And from an administrative standpoint, biweekly pay is easier to manage and helps ensure compliance with labor laws.