What is a pay cycle?

A pay cycle is how often payroll is run and the specific days that workers are paid. For instance, a pay cycle is bi-weekly if employees are paid on the 15th or middle of the month and again on the last day of the month. Alternatively, if a pay cycle is monthly, employees are typically paid at the end or start of the month.

Pay cycles are assigned to positions to help control when workers in those positions are paid. They are also assigned to the payroll calculation frequencies that determine the schedule for processing payroll elements, such as benefits or recurring earnings. Companies determine their pay cycles based on their business model, employee satisfaction, and convenience.