1. What is Semi-Monthly Pay?

Semi-monthly pay refers to a payment schedule where employees are paid twice per month, typically on specific dates (e.g., 15th and last day of month). This results in 24 pay periods per year.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Annual Salary — The employee's total yearly compensation before deductions
• 24 — The number of semi-monthly pay periods in a year

3. Importance of Semi-Monthly Pay Calculation

Details: Understanding semi-monthly pay helps both employers and employees with budgeting, financial planning, and comparing compensation across different pay schedules.

4. Using the Calculator

Tips: Simply enter the annual salary in dollars. The calculator will divide this amount by 24 to determine the semi-monthly pay amount.

5. Frequently Asked Questions (FAQ)

Q1: How is semi-monthly different from biweekly?
A: Semi-monthly means twice per month (24 pay periods/year), while biweekly means every two weeks (26 pay periods/year).

Q2: Which is better - semi-monthly or biweekly?
A: Semi-monthly provides consistent pay dates but may complicate hourly wage calculations. Biweekly means two extra paychecks per year but variable pay dates.

Q3: Are deductions different for semi-monthly pay?
A: Benefit deductions are typically split evenly across all pay periods, so semi-monthly deductions may be slightly higher than biweekly.

Q4: How does this affect overtime calculations?
A: For non-exempt employees, overtime is still calculated based on weekly hours worked, regardless of pay frequency.

Q5: What if my pay periods aren't exactly semi-monthly?
A: Some companies pay on specific weekdays (e.g., 2nd and 4th Friday), which may result in 2 or 3 pay periods in some months.