How Many Paychecks in a Year with Biweekly Payroll: 2025

Trying to figure out how many paychecks you actually get in a year with biweekly pay? It’s a common question, one that even experienced HR teams and small business owners double-check when planning pay schedules or forecasting annual budgets.

Many US businesses and global teams find this tricky because the answer isn’t always the same, sometimes it’s 26 paychecks, other times it’s 27. That small difference can change how salaries, taxes, and benefits are calculated throughout the year.

No stress, we’ll make it simple. You’ll understand exactly how biweekly pay works, why some years include an extra paycheck, and how it compares to other pay schedules to help you plan smarter.

In this article, we’ll break down how many paychecks in a year biweekly, uncover the logic behind 26 vs. 27 pay periods, and show which payroll frequency works best for your business. Let’s dive in.

What is biweekly payroll?[toc=Biweekly Payroll]

Biweekly payroll is a system where employees receive their paychecks every two weeks, typically on the same day of the week, such as every other Friday. This schedule results in 26 pay periods per year, with each pay period spanning 14 days.

For salaried employees, their annual salary is divided by 26 to determine the gross amount per paycheck. For hourly employees, their total hours worked in the two-week period are multiplied by their hourly rate to calculate their earnings for that period. Overtime is calculated based on the total hours worked over the two-week period, which simplifies compliance with overtime regulations.

Biweekly payroll is widely adopted across various industries in the U.S., including education, health services, and leisure and hospitality. According to the U.S. Department of Labor, approximately 43% of U.S. businesses utilize a biweekly pay schedule.

Now, let's take a closer look at how this system works in practice and why it’s so effective for both employers and employees.

How does biweekly payroll work?

With biweekly payroll, employees are paid every two weeks, resulting in 26 pay periods per year. Each pay period spans exactly 14 days, making it easier for HR teams to track hours worked and calculate overtime. This regular schedule simplifies payroll processing and ensures compliance with labor laws.

For salaried employees, the annual salary is divided by 26 to determine the amount earned per paycheck. For example, if an employee makes $52,000 a year, they would receive $2,000 per paycheck before any deductions.

For hourly employees, their pay is calculated by multiplying their hourly rate by the total hours worked in those two weeks. Overtime pay is calculated based on the total number of hours worked over two weeks, ensuring that the standard 40-hour workweek is maintained.

This payroll system benefits both employers and employees. Employers find it easier to manage, especially when dealing with hourly workers and overtime. Employees appreciate the consistency of biweekly pay, which enables them to budget and plan their finances more effectively.

However, there’s a unique quirk to the biweekly payroll system that can throw off both employers and employees, the 27th paycheck anomaly. Let’s explore the causes of this issue and its impact on payroll.

The 27th paycheck anomaly

Typically, employees on a biweekly payroll schedule receive 26 paychecks each year. This is because there are 52 weeks in a year, and when you divide that by two, it gives you 26 pay periods.

However, every 11 years or so, a quirk in the calendar causes an extra paycheck. This happens because the calendar year is 365 days (or 366 in a leap year), and it’s not perfectly divisible by 14, which is the length of a biweekly pay period.

For example, in 2021, employees on a biweekly pay schedule received 27 paychecks, as January 1st fell on a Friday. This misalignment of days created an additional pay period. The next occurrence will be in 2027.

While an extra paycheck can be a nice surprise for employees, it creates challenges for employers. The additional payroll expense can strain budgets if not planned for, especially when it's unexpected.

Also, the 27th paycheck can impact things like benefit deductions and tax withholdings, particularly for contributions tied to annual limits (like 401(k) plans). HR teams must be prepared to manage these aspects and keep employees informed about any changes.

Now, let’s compare the biweekly payroll system with other common pay schedules to understand its advantages and challenges better.

How does biweekly payroll compare with other pay schedules?[toc=Comparison: Other Pay Periods]

Through our experience supporting global companies with payroll management, and compliance operations, here’s how biweekly payroll differs from other common pay schedules and what each means for business efficiency.

Key differences between biweekly pay and other pay schedules like weekly, semi-monthly, and monthly.

Frequency of Pay

Weekly pay schedules provide the most frequent income, ideal for employees who rely on steady cash flow. However, they demand more payroll processing and increase administrative workload. Biweekly pay schedules strike a practical balance with 26 paychecks a year, occasionally 27 when pay dates fall just right, requiring smart cash flow management from both employers and employees.

Administrative Complexity

Monthly pay periods is the easiest to manage, with just 12 pay periods per year, minimizing administrative effort. Semimonthly pay schedules offer predictability but can complicate overtime and track employee hours for hourly workers since each pay period type varies in length.

Employee Budgeting

More frequent pay schedules, such as weekly or biweekly, support better short-term budgeting and consistent income. Monthly pay schedules, while simpler for businesses, require employees to plan expenses carefully between longer pay weeks to maintain financial stability.

Selecting the appropriate pay schedule involves balancing administrative capabilities, employee needs, and financial considerations. It's essential to evaluate how each option aligns with your organization's operations and workforce preferences.

Now, let’s look at how biweekly payroll impacts salary and deductions.

How does biweekly pay impact salary and deductions?[toc=Salary and Deduction Impacts]

In a biweekly payroll system, employees receive 26 paychecks annually. For salaried employees, their annual salary is divided by 26 to determine the gross pay per paycheck. For example, an employee earning $52,000 annually would receive $2,000 per paycheck before deductions. This consistent distribution aids in budgeting and financial planning for both employees and employers.

Deductions:

Deductions such as taxes, benefits, and retirement contributions are applied per pay period. These deductions are typically prorated over the 26 pay periods. However, in years with 27 paychecks, employers must decide whether to:

• Prorate deductions over all 27 pay periods: This results in slightly smaller deductions per paycheck.
• Skip deductions during the extra paycheck: This approach increases the net pay for that period but requires careful communication with employees to avoid confusion.

You should ensure that deductions are adjusted appropriately to maintain compliance and avoid exceeding the annual limits for benefits, such as 401(k) contributions.

See our article on "How is bi-weekly pay calculated?" for a detailed explanation of how to calculate bi-weekly pay.

How should employers plan for extra paycheck years?[toc=Extra Paycheck]

With our hands-on experience helping companies with payroll management, and compliance operations, here’s how employers can prepare for extra paycheck years while keeping payroll accurate, compliant, and on schedule.

Employee Considerations:

In years with 27 paychecks, employees receive an additional paycheck. While this may seem like a bonus, employees need to plan accordingly. They might consider using the extra paycheck to:

• Save for future expenses
• Pay off outstanding debts
• Make significant purchases

Proper planning ensures that the extra income is utilized effectively and doesn't disrupt financial stability.

Employer Considerations:

Employers should anticipate the additional payroll expense in years with 27 paychecks. It's advisable to:

• Budget for the extra paycheck in advance
• Communicate with employees about the occurrence of the extra paycheck
• Adjust benefit deductions as necessary to comply with annual limits

By proactively addressing these factors, employers can maintain smooth payroll operations and employee satisfaction.

Which pay frequency is right for your business?[toc=Find Right Pay Period]

Choosing the right pay frequency depends on your company’s size, employee mix, cash flow stability, and administrative capacity. Here’s how the different pay schedules compare:

Pro Tip: If your goal is to reduce administrative burden without hurting employee satisfaction, a best pay period biweekly is often the best middle ground, frequent enough to keep and pay workers engaged but efficient enough for your payroll team to manage smoothly.

What industries use bi weekly pay?[toc=Industries Using Bi Weekly]

With our hands-on work helping global businesses streamline payroll operations, we’ve seen how different industries use biweekly pay to balance efficiency and employee satisfaction.

Here are the main sectors where biweekly payment schedules are standard:

• Retail: High-volume hourly workers benefit from frequent paychecks and easier budgeting.
• Hospitality: Restaurants, hotels, and event companies use bi weekly pay to align with weekly scheduling and tip cycles.
• Manufacturing: Predictable pay weeks simplify attendance tracking and overtime calculations for hourly employees.
• Healthcare: Hospitals and clinics prefer bi weekly payroll for consistent cash flow management and staff rotation planning.
• Customer Support & BPOs: Large workforces find bi weekly payments efficient for payroll services and reduced administrative effort.
• Construction & Maintenance: Project-based hourly employees are paid every two weeks for easier hour tracking and cost reporting.
• Education & Public Services: Many institutions follow bi weekly payment schedules to ensure steady income across long-term roles.

Biweekly payroll fits best in industries with a mix of hourly and salaried employees, where frequent, predictable pay supports morale without overloading payroll systems.

What HR should know about biweekly pay periods?[toc=Key Considerations]

For HR teams, it’s essential to understand how structure of bi weekly pay period affects processing payroll , budgeting, and overall employee satisfaction.

Advantages of Biweekly Pay

Learn how biweekly payroll can improve efficiency and employee expectations

For Employers:

• Balanced payroll frequency: Offers predictable pay periods without the frequent payroll processing of a weekly pay schedule, reducing administrative work.
• Improved cash flow stability: Easier to align company’s cash flow with regular pay weeks and expense forecasting.
• Reduced administrative burden: Fewer payroll runs than weekly pay lower administrative costs while maintaining consistency.
• Compliance-friendly for hourly employees: Simplifies overtime calculations, benefit deductions, and tracking employee hours under the Fair Labor Standards Act (FLSA).
• Higher employee retention: Regular, frequent paychecks can increase employee satisfaction without complicating payroll cycles.

For Employees:

• Frequent payments: Employees receive income twice a month instead of waiting for only one paycheck, helping them manage short-term expenses better.
• Predictable pay cycles: Knowing when pay dates fall helps in budgeting and careful financial planning.
• Applicable for both hourly and salaried employees: Works well for diverse teams, from hourly workers needing steady income to salaried employees preferring regular deposits.
• Easier cash flow management: More consistent payment schedules prevent financial stress between pay periods.

Disadvantages of Biweekly Pay

See how to plan for extra pay periods and manage payroll challenges

For Employers:

• Extra pay periods: Every 11 years, an extra pay period (27 instead of 26) may increase payroll costs and affect company’s cash flow.
• Complex payroll processing: Requires strong payroll systems and reliable payroll services to handle changing pay weeks and holiday adjustments.
• Additional accounting tasks: More frequent payroll cycles can add reconciliation and compliance steps to managing pay periods.

For Employees:

• Smaller paycheck amounts: Since the annual salary is split across more pay periods, each biweekly paycheck is smaller compared to semimonthly pay or monthly payments.
• Potential confusion in extra pay periods: Employees may misunderstand why an extra paycheck doesn’t increase total salary.
• Irregular pay dates: When pay dates fall on weekends or holidays, adjustments in payroll calendars may shift deposits, affecting budgeting.

While biweekly pay offers a strong balance between efficiency and satisfaction, employers should plan for extra pay periods and maintain accurate payroll systems to ensure smooth, compliant operations year-round.

How to manage payroll processing deadlines efficiently?[toc=Manage Effectively]

Process payroll promptly after each pay period to avoid delays in paychecks and cash flow issues. Set a clear payroll schedule with buffer days for reviews and bank processing. A consistent payroll calendar keeps payments accurate, on time, and compliant.

Legal Regulations

• Under the FLSA, employees must be paid promptly after a pay period ends.
• State laws vary: Connecticut requires weekly pay, while Kansas and Washington allow monthly pay schedule.
• Non-compliance can lead to fines, penalties, or legal action under federal and state laws.

Compliance Considerations

• Missing payroll deadlines can trigger penalties and damage employee trust.
• Employers must submit payroll taxes on time to federal, state, and local authorities.
• Use a detailed payroll calendar that includes paydays and tax due dates.
• Regularly review your payroll system and coordinate with your payroll provider to ensure compliance and accuracy.

Want error-free payroll without the headaches? See our "Payroll Services Cost Comparison 2025: The Ultimate Guide" to discover the best payroll providers, pricing insights, and expert tips to simplify your payroll management today.

How do Wisemonk help global companies simplify payroll and compliance?[toc=Why Choose Wisemonk]

Wisemonk is a leading Employer of Record (EOR) in India that enables global companies to hire, pay, and manage talent with ease. We take care of payroll, taxes, and compliance, ensuring your international operations run smoothly and efficiently.

How we support your business:

• Complete Payroll Management: Automate payroll processing while staying compliant with Indian tax and labor regulations.
• Continuous Compliance Monitoring: Get real-time updates on policy and legal changes that impact your workforce.
• Time and Cost Efficiency: Reduce overhead by outsourcing complex payroll and compliance functions to local experts.

Book a free consultation today to discover how we can help you hire, pay, and manage your global team seamlessly.