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Payroll

Pay Period

The recurring interval at which employees are paid.

Full Definition

A pay period is the regular interval over which employee work hours are tracked and for which employees are paid. Common pay period frequencies include weekly, bi-weekly (fortnightly), semi-monthly (twice a month), and monthly. The pay period affects cash flow management, payroll processing workload, and employee satisfaction. Monthly pay periods are most common in the UK; bi-weekly is most common in North America. Payroll software is configured with each organization's pay period schedule and automates calculations for each run.

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