A pay period (or pay cycle) is the recurring amount of time during which an employee’s wages are calculated for payment; this period could span a week, two weeks or some other length of time situs judi online.
As a small business owner and employer, you have some leeway in how long your company’s pay periods will be. The only related federal guideline exists in the Fair Labor Standards Act, which requires wages to be paid on an employee’s “regular payday for the pay period covered.”
While this may sound vague, states are often more specific about their payday requirements. For example, Nebraska allows employers to choose when employees get paid, while Maine requires employers to pay employees at regular intervals that are 16 days or less. Vermont requires written notice from employers before they can implement a biweekly or semimonthly pay cycle. When in doubt, check your state’s guidelines.
Is there a difference between a pay period and a payday?
Two terms related to employee compensation may cause a little confusion: pay period and payday.
As stated previously, a pay period is the recurring amount of time during which an employee’s wages are calculated for payment. A payday, by contrast, is the exact calendar date on which an employee receives their paycheck.
“If ABC company pays employees on the 1st and the 15th of every month, each is a pay date,” said Ruhal Dooley, an HR knowledge advisor at the Society for Human Resource Management. “The corresponding pay periods could cover the 1st through the 15th, and the 16th through the last day of the month.”