What is a pay period?

A pay period is a designated time period, usually one week or two weeks, during which an employee earns their salary or wages. During each pay period, employees accumulate their salaries and wages based on the number of hours they have worked, along with any overtime or bonuses they may have earned. Employers generally calculate pay periods based on a predetermined schedule, such as weekly, bi-weekly, semi-monthly, or monthly. The pay period ends on a specific day, which is referred to as the pay period end date or the cutoff date, and the payroll is calculated based on the hours actually worked during that period. Once the payroll is processed, employees receive payment for their wages and salaries, which may be done via direct deposit, check, or cash.