My new job pays on the 15th and 30th of every month. IF those days fall on a weekend we get paid on the friday before. My math is terrible but this feels like I come out with LESS paychecks per year?
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24 pay periods under this system.
biweekly pay periods give 26 pay periods.
So yeah, there are fewer in your new job.
It’s not the same as bi-weekly.
Bi-weekly = 26 paycheques per year. 15th and 30th = 24 paycheques per year.
What’s the difference as long as the annual amount is the same?
All good points, because terminology can be important, I think the proper term for your scheme would be semi-monthly. Also, you’re looking for “fewer” in your paychecks per year. “Less” is for things you can’t quantify, like “We need less war in the world”, fewer is for things you can count, “I have 3 fewer apples than you do”.
The good news for you is each pay check is going to be a bit larger than a bi-weekly scheme and also you can better time your monthly bills with you direct deposits. Bi-weekly sucks when you sometimes get a check in the middle of the month and then a few days after the 1st of the new month and your rent/mortgage is due on the 1st.
You get paid 24 times per year as compared to 26. However, the paychecks will be very slightly larger to compensate for this, as the days for the two less paychecks will be on other paychecks throughout the year.
Also keep in mind, while you will be getting FEWER paychecks (compared to bi-weekly pay) per year, the amount paid to you within each paycheck will be MORE to make up the difference. It wont be much more, but it will be more.
You will have fewer paychecks.
That doesn’t mean you get paid less. It just means your pay is spread across fewer paydays (which means for the same amount of work, your average check is slightly higher).
If you average 40 hrs/wk at $20/hr, that’s $41,600 a year.
If you’re paid twice a month, you’ll average $1733.33 per check. If you’re paid bi-weekly, you’ll average $1600 per check (all before taxes obv).
But it works out to the same amount of total pay.
You will be getting fewer paychecks, but some paycheck will be for a higher amount, since biweekly always pays for 10 business days, but there could be more business days during a given 15-day period.
>My math is terrible but this feels like I come out with LESS paychecks per year?
* You are correct.
* 52 weeks in a year, so bi-weekly paychecks = 26
* 12 months in year so 2x paychecks a month = 24
* In either setup you are still getting paid either your whole salary or for every hour you worked.
Former business owner here. If you use a payroll company, they charge you to issue a paycheck to a person. They remove the appropriate amount of taxes and send the agencies that get them. The fee is per check. I paid weekly till I realized how much extra it was costing me. So we went to bi-weekly. If I was smart, I would have done the twice a month.
So this is probably more about the company saving money than anything else.
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