How Do Biweekly Payouts Work in 2026

You set up payroll for your remote team.

Someone asks if you’re paying biweekly or semimonthly.

You realize you don’t actually know the difference.

Here’s what biweekly actually means. How to set it up. And what matters legally when you’re paying Filipino remote workers from the US, UK, or Australia.

What Biweekly Pay Actually Is

Biweekly means paying every 14 days.

Most companies pick the same weekday. Every other Friday is common. That creates 26 paychecks per year, sometimes 27.

This is different from semimonthly.

Semimonthly happens on fixed calendar dates. The 15th and 30th, for example. That’s exactly 24 pay periods every year.

With biweekly, the date changes but the weekday stays the same. Your payday might be the 5th one month and the 19th the next.

Countries like the UK and Australia call this “fortnightly pay.” Same thing.

How to Calculate Biweekly Pay

For fixed monthly rates:

Your VA earns $800/month. That’s $9,600 annually.

Divide by 26 pay periods: $9,600 ÷ 26 = $369.23 per biweekly paycheck.

For hourly rates:

Your VA worked 80 hours over two weeks at $6/hour.

80 hours × $6 = $480 for that pay period.

The math is straightforward. 

If you’re a US employer, overtime typically kicks in after 40 hours per week, not 80 hours over two weeks. 

Keep your overtime calculation separate from your pay period.

Setting Up Your Biweekly Schedule

Start with clear boundaries.

Pick your pay period dates. Most use Sunday through Saturday for consistency.

Example: pay period runs Sunday the 1st through Saturday the 14th, with payment hitting accounts on Friday the 20th.

That six-day gap gives you time to approve timesheets, process payments through Wise or PayPal, and handle any bank delays.

Pick a payday and stick to it.

Your team needs to know exactly when money arrives. Every other Friday. Every other Thursday. Whatever you choose, hit it consistently.

Map holidays that might delay transfers. US bank holidays affect Wise transfers. Philippine holidays might affect local bank processing. Plan around both.

If you’re deducting anything (health stipends, equipment payments, advances), convert those to per-period amounts. A $50 monthly deduction becomes $23.08 per biweekly period ($50 × 12 ÷ 26).

Tell your team upfront that some months have three paychecks. Walk them through how the schedule works so nobody’s confused when they see payment dates shifting across the calendar.

The 27-Paycheck Year

Some years squeeze in 27 biweekly pay periods instead of 26.

This happens because 26 two-week cycles equal 364 days. Regular years have 365. That extra day eventually creates an additional pay period.

For hourly workers, it’s simple. You pay for hours worked across however many periods occur.

For fixed monthly or annual rates, you need to decide:

Option 1: Divide annual compensation by 27 instead of 26. Each paycheck is slightly smaller but total stays the same.

Option 2: Pay the standard amount for all 27 periods. Your VA effectively gets a bonus.

Option 3: Adjust your calendar to keep exactly 26 periods by shifting one pay period.

Most employers go with Option 2 because it’s simpler and your team appreciates the extra check.

Whatever you pick, communicate it before it happens. Don’t surprise people with smaller paychecks or unexplained bonuses.

How This Affects Your Tax Obligations

Your tax situation depends on your location and how you’re classifying workers.

If you’re a US employer paying Filipino contractors:

True independent contractors handle their own Philippine taxes. You don’t withhold anything. They’re responsible for BIR compliance.

You may need to collect a W-8BEN form to document that they’re foreign contractors, which exempts them from US tax withholding.

If you’re a US employer with Filipino employees:

You’re dealing with both US and Philippine tax obligations. This gets complex fast and usually requires working with an Employer of Record or international payroll provider.

If you’re outside the US:

UK, Australian, and Canadian employers typically pay Filipino contractors gross. The contractor manages their own Philippine tax obligations.

The biweekly schedule itself doesn’t change what you owe. It just determines when you process payments and document them.

Why Biweekly Works for International Teams

You’re running payroll half as often as weekly pay. That matters when you’re processing international transfers.

Every transfer through Wise or PayPal costs time and usually a fee. Cutting 52 annual transfers down to 26 reduces both.

The 14-day rhythm is predictable. Your VAs know when to expect payment. You know when to have funds ready.

Biweekly satisfies Philippine legal requirements while matching common US and UK business practices. You don’t need different schedules for different regions.

Most global payment platforms optimize around biweekly cycles. Wise, PayPal, Deel, Remote all support automated biweekly transfers.

The Real Challenges

Every pay period involves currency conversion. Exchange rates fluctuate.

Your VA might see $400 one period and $398 the next even though you sent the same USD amount. The peso conversion rate changed.

Some employers solve this by agreeing on a USD amount and letting the VA handle conversion timing. Others lock in peso amounts and adjust the USD they send based on current rates.

Payment processing takes time. A Friday payday in New York means Saturday morning in Manila. Factor in weekends and bank processing delays.

Biweekly pay requires more admin than monthly. You’re approving timesheets, processing invoices, and initiating transfers 26 times per year instead of 12.

If you’re using a platform that charges per transaction, those costs add up.

Making Biweekly Work for Your Team

Set crystal-clear expectations upfront.

Your contract or agreement should specify: exact payday (every other Friday), how you calculate payment (fixed amount or hourly rate), what currency you’re sending, what platform you’re using, and how you handle holidays that fall on payday.

Use time tracking that feeds directly into your payment process. Manual timesheet collection every two weeks creates bottlenecks.

Automate what you can. Wise and PayPal both support recurring transfers. Set them up once and approve them each period instead of manually entering payment details 26 times per year.

Communicate when there are delays. Bank holidays, platform maintenance, compliance issues. Tell your team immediately if payment will be late, even by a day.

Keep records of every transfer. Date sent, amount in USD, amount received in PHP if known, confirmation number. You’ll need this for accounting and dispute resolution.

Contractors vs Employees on Biweekly Schedules

Payment frequency is negotiable for genuine contractors.

You can agree to weekly, biweekly, monthly, or per-project payment. As long as you respect the 16-day maximum, you’re compliant with Philippine rules.

The key word is “genuine.” If you’re treating someone like an employee (set hours, direct supervision, company equipment), calling them a contractor doesn’t make it legal.

Most international platforms default to biweekly for contractors because it balances cash flow needs with administrative efficiency.

For true employees, you’re dealing with formal payroll obligations in both your country and the Philippines. This usually requires working through an EOR or PEO that handles compliance.

Getting Started

Pick your pay period boundaries and payday.

Choose your payment method. Wise works well for bank transfers. PayPal is simpler but has higher fees. Some platforms like ManagePh handle everything.

Set up your first payment cycle manually. Walk through the full process. Approve hours, calculate payment, initiate transfer, confirm receipt.

Once you’ve done it successfully, look for automation opportunities. Recurring transfers, automated timesheet reminders, standardized approval workflows.

Document your process. Write down exactly what happens each pay period and when. This makes it easier to delegate or troubleshoot when something goes wrong.

Biweekly pay isn’t complicated once you understand the mechanics. Your team gets paid every two weeks. You process payroll every two weeks.

The rhythm works when you set clear expectations and hit your schedule consistently.