What is the correct calculation for semi-monthly pay?

To calculate semi-monthly pay accurately, it is essential to understand how many pay periods fall within a year. Semi-monthly pay consists of 24 pay periods, as employees are paid twice each month.

The correct approach is to take the hourly pay and multiply it by the number of hours worked in each pay period. This gives the total earnings for that semi-monthly period. Thus, if you take the product of hourly pay and hours worked during that specific period and then multiply it by 24 weeks, it would lead you to a different context, mainly in calculating for the entire semi-monthly structure across the span of a year rather than focusing strictly on pay intervals.

This method allows for accurate compensation within the framework of a semi-monthly payroll system, maintaining coherence with standard payment practices and keeping your calculations aligned with expected financial reporting over the fiscal period.