How Many Pay Periods Are in a Year?

Understanding the number of pay periods in a year is essential for smooth payroll management. It’s especially important if you're hiring across regions with strict pay cadence laws. For example, in the US, the Fair Labor Standards Act (FLSA) and state laws mandate timely wage payments.

Choosing the right pay schedule is more than a simple decision. It depends on how often you choose to pay employees, which in turn defines how many pay periods there will be throughout the year. Here's a breakdown:

Note: Pay periods track the time worked, while paychecks are the actual payments. These generally align, but special payments, like bonuses, can cause paychecks to vary from pay periods.

With Deel’s built-in compliance and automated payroll, you can rest easy knowing employees are getting paid accurately and on time.

In this article, you’ll learn how pay periods are determined, how they impact payment schedules, and how Deel can help streamline the process.

What is a pay period?

A pay period is the recurring timeframe used to calculate earned wages and determine when employees are paid. It’s also called payroll frequency.

Once you set the pay period, it impacts several key payroll calculations:

• Employee budgeting: Employees appreciate predictable pay dates, especially hourly workers who rely on regular pay. More frequent pay periods (weekly or bi-weekly) can make managing personal finances easier

• Tax withholdings: Pay frequency affects the amount of tax withheld. More frequent pay periods generally mean smaller withholdings per paycheck, while less frequent pay schedules mean larger deductions per paycheck

• Employee benefits: Deductions for benefits like health insurance or 401(k) contributions are calculated and withheld per pay period. The frequency affects how much is deducted to meet annual goals

For more on benefits management, Deel’s Global Benefits Tool simplifies designing competitive benefits packages across global markets.

Who decides the pay periods in a year?

Generally, the employer chooses the pay frequency such that it complies with applicable federal and state wage and hour laws. The decision should balance business needs, administrative capacity, employee preferences, and legal requirements.

Pay period options: Weekly, bi-weekly, semi-weekly, monthly

Each pay frequency has its place, depending on your workforce, internal capacity, and compliance requirements. Here’s how each pay period works in practice, with key pros and cons to help guide your decision.

Weekly pay period (52 pay periods per year and 53 in leap years)

The weekly pay period is when employees receive payment once every week. That adds up to 52 paychecks in a payroll calendar year.

Businesses like construction, manufacturing, hospitality, retail, or any business with many hourly workers adopt weekly pay periods.

Biweekly pay period (26 or 27 pay periods in a year)

The biweekly pay period is when employees receive payment every two weeks, usually on the same day, like a Friday. Otherwise, you can decide a specific day of the week with employees. This results in 26 paychecks in a normal year. Sometimes, because of how the calendar falls, there might be an extra 27th paycheck in one year.

The bi-weekly pay period is used for a wide range of industries and is popular for hourly and salaried employees.

Semi-monthly pay periods (24 pay periods in a year)

The semi-monthly pay period is when employees receive payment twice a month. It is often on set dates like the 15th and the last day of the month. This always adds up to 24 paychecks per calendar year.

Semi-monthly works great for companies with mostly salaried staff. These include office jobs, professional services, finance, tech, and businesses that primarily have salaried employees.

Monthly pay periods (12 pay periods in a year)

Under a monthly pay schedule, employees receive one paycheck per month, totaling 12 annually. This is the simplest option from a payroll processing standpoint.

Monthly pay is more common in government agencies and organizations with highly stable, salaried workforces.

If you’re unsure which option best fits your business, Deel can help you evaluate your needs and automate payroll—no matter the frequency or country. Learn more about different pay schedules and how to choose one.

Special considerations to determine pay periods

When setting your pay period schedule, account for key calendar events and compliance requirements that can affect how and when employees are paid. Here’s what to consider:

Leap years and the 27 pay period year

Leap years (like 2024) add an extra day—February 29. For most pay frequencies, this extra day doesn’t impact payroll processing.

However, bi-weekly payrolls operate on a 14-day cycle. Since 365 days (or 366 in a leap year) aren’t evenly divisible by 14, a 27th pay period may occur roughly every 11 years. Whether this happens in a given year depends on when your payroll cycle starts.

For example, 2021 was a 27-pay-period year for many companies. While this isn’t directly caused by the leap year, the extra day can shift how the pay periods align with the calendar.

How to handle the 27 pay period year?

First, decide whether to divide their annual salary by 26 or 27.

• Divide the annual salary by 27: Paychecks will be slightly smaller, but the total pay across the year stays the same
• Divide the annual salary by 26: Paychecks stay consistent with previous years, and the 27th paycheck becomes additional compensation. Total pay for the year will be slightly higher than usual

HR and payroll teams must also account for benefits and tax withholdings.

IRS limits for benefits like HSAs, FSAs, and 401(k)s apply to the total calendar year. If deductions continue automatically into a 27th paycheck (using a per-period rate designed for 26 pay periods), employees could exceed annual contribution limits and incur penalties.

Aligning payroll with holidays and weekends

Banks don't process payments on weekends or federal bank holidays.

If a scheduled payday falls on a weekend or holiday, you generally must pay employees before that day. For example, you can pay on Friday if payday is Saturday or Sunday, or you can pay the day before a bank holiday.

Make sure to establish a clear payroll policy where you always pay before.

If legal requirements allow, you can choose to pay the day after. Communicate the same with employees in advance and include these adjusted dates in your annual payroll calendar.

Changing pay frequencies mid-year

You can change your company’s pay frequency during the year—but only if it complies with all relevant state and federal wage laws for affected employees.

Then, inform employees well in advance about the change, the reason for it, the transition date, and how their paychecks and deductions might be affected. If they have concerns, address them with transparency.

When updating payroll calculations, implement the below measures:

• Make sure no employee loses wages during the switch. This might involve a pro-rated check for a shorter or longer transition period
• Update your payroll system to recalculate deductions per pay period
• Adjust PTO accruals if necessary
• Update employee contracts or handbooks

How to track employee pay periods

Tracking pay periods accurately is essential for paying employees on time, staying compliant with federal and state laws, and avoiding errors in taxes, benefits, and reporting.

Define your pay frequency

Start by selecting your company’s pay frequency—this determines how many pay periods you’ll have in a calendar year. This frequency defines how you build your payroll calendar.

Create a payroll calendar

Map out every pay period and corresponding payday for the full year in advance.

Your payroll calendar should include:

• Pay period start and end dates
• Payroll processing dates (when payroll is run)
• Pay dates (when employees receive payment)
• Adjustments for weekends or holidays (move pay date to the previous business day)

You can use tools like Excel, Google Sheets, or HR/payroll software to generate and maintain this calendar.

Use payroll software

Modern payroll platforms automate pay period tracking. They handle:

• Automatic pay date generation
• Deductions and accruals tied to each pay period
• Adjustments for holidays, leap years, and 27-pay-period years
• Real-time tax and benefit compliance
• Alerts for upcoming payroll deadlines

If you’re managing teams across multiple states or countries, use a global payroll system like Deel. It centralizes and automates pay period management, ensures compliance, and supports multiple pay frequencies within a single platform.

Track time data (for hourly workers)

For hourly or non-exempt employees, accurate time tracking is critical. You need reliable tools to log hours worked within each pay period.

Use:

• Time-tracking software
• Integrated punch-in/punch-out systems
• Employee self-service tools

This ensures accurate wage calculations for each pay period, including overtime.

See also: How to Manage Employee Time and Attendance Efficiently and Compliantly

Align deductions and benefits

Many employee benefits, like health insurance premiums or 401(k) contributions, are deducted per pay period. You’ll need to:

• Set contribution limits and caps based on IRS rules
• Calculate per-pay-period deductions correctly
• Adjust deductions during 27-pay-period years (for bi-weekly schedules)

Your payroll system should automate this, but manual checks are important during setup and year-end.

Regularly audit for accuracy

Build in routine reviews to check that:

• Pay period dates are consistent across systems
• Pay rates, hours, and deductions match employee records
• Tax and benefit deductions follow correct schedules
• PTO accruals are correctly aligned to the pay frequency

Regular payroll audits help prevent compliance errors and build trust with employees.

Put payroll on autopilot with Deel

Deel offers built-in tools for pay period management, automated calculations, and compliance monitoring. Whether you pay weekly or monthly—US-based or global—Deel’s platform handles the complexity so your team gets paid accurately, every time.

Book a demo to see how Deel supports consistent, compliant payroll across any frequency or geography.