How semi-monthly pay is calculated for salaried employees
A salaried employee's semi-monthly pay varies between periods because 7shifts calculates pay using a weekly salary, while Check Technologies applies hourly logic based on the number of days in each period. Over a full year, the employee still receives their complete annual salary.
Question
How is a salaried employee's pay calculated on a semi-monthly cadence?
Answer
Semi-monthly pay amounts vary slightly between periods because the number of days in each period differs.
Why This Happens
7shifts calculates pay using a weekly salary, while Check Technologies, the payroll processor, applies hourly logic to determine the payout for each period. Because semi-monthly periods don't contain the same number of days, the pay amount varies from period to period. By the end of the year, the employee still receives their full annual salary.
Here's an example using a $1,000 weekly salary:
- Weekly salary: $1,000.
- Daily rate: $1,000 ÷ 7 = $142.86 per day.
- February 1 to 15 (15 days): $142.86 × 15 = $2,142.86.
- February 16 to 28 (13 days): $142.86 × 13 = $1,857.14.
The pay for each period depends on the number of days in that period, which is why amounts vary slightly. Over the year, the total pay equals the full annual salary.
What To Do
If you prefer to pay the same amount every period, run an off-cycle payroll. This lets you enter the exact number of hours you want to pay out.