The wages of employees and their pay dates are one of the most important things that an employer needs to keep in mind while managing a business. While weekly and monthly payroll cycles have been the most common forms that employers have always followed, these days, there is a shift in the trend as many employers are shifting to semi-monthly pay. Now, this guide will tell you all about semi monthly meaning and why this payroll cycle is gaining popularity among business owners. 

Understanding the meaning and importance of semi-monthly pay 

Semi-monthly pay refers to a method of compensation whereby the employees receive wages twice per month on fixed dates, such as the 1st and 15th or perhaps the 15th and 30th. Thus, employees receive 24 payments a year.

This type of payment schedule ensures that two paychecks are issued every month to their employees. The first one is provided in the middle of the month, and the second one is issued at the end of the month or the beginning of the next.

The main reason why this payment method is used in many companies is that it allows industries and businesses to plan their finances more predictably. With semi monthly pay, employees get their money twice in the month, which is not too close (in weekly pay), or too far (in monthly pay). 

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