Deductions for Employees Paid Bi-Weekly

Employees paid bi-weekly (26 pay dates a year) usually have two pay dates a month, but will have three pay dates in some months. Zenefits calculates and pushes deductions for bi-weekly employees by one of two methods: 24 (equivalent to a semi-monthly schedule) or 26 pay dates. However, any custom deduction amounts entered manually into Zenefits Payroll will show up in all paychecks, regardless of the method used for automatic calculation of normal deductions. To switch to a different method, contact Zenefits Support.

Method 1: 24 Paychecks

In this method, Zenefits calculates deductions for bi-weekly employees as if they were semi-monthly (24 pay dates in a year) so that monthly deduction amounts correspond directly with the premiums paid monthly for coverage.

  • Normal deductions for these employees are split evenly between two paychecks in most months.
  • In the months with a third pay date, Zenefits will calculate no ($0) normal deductions for the third paycheck.

If required, only special deductions such as catch-ups or 401( k ) contributions as a percentage of salary will be taken from their paycheck for the third pay date of the month.

  • 100% of benefits deductions in the third paycheck will be catch-ups.
  • 401( k ) contributions as a percentage of salary are deducted from all paychecks. These deductions will always show up in every paycheck.

Method 2: 26 Paychecks

In this method, Zenefits spreads deductions evenly over all 26 pay dates in year. In the months with a third pay date, Zenefits will spread employees' deductions across all three paychecks. If any catch-ups are required, they will show up along with normal deductions.

Was this article helpful?  

Still need our help? Our support team is waiting to help you. Contact us