Pay Periods - Explanation and Guide to Setting Up Pay

Learn more about pay periods for compensating your employees, different pay period timeframes, and how to organize them. Includes frequently asked questions.Updated on March 29th, 2023The SMB Guide is reader-supported. When you buy through links on our site, we may earn anaffiliate commission. Learn moreSolutionsSmall Business Solutions Pay periods refer to a recurring schedule that a new business creates in order to pay its employees, and are typically determined when a company sets up payroll. The frequency of pay periods varies from company to company, but they commonly occur on a weekly, bi-weekly, semi-monthly, or monthly basis.How Pay Periods Work:1. Weekly pay periods.Employees who are paid weekly receive 52 paychecks per year. When setting up a weekly payroll, payment should occur on the same day every week. These employees are sometimes paid in arrears, which means that their work time for the week is calculated and they are then paid the following week. Hourly employees are t...