Tax Implications of Switching Pay Periods

If hourly goes from weekly to biweekly, do you get more money back in taxes or less at then end of tax year.?


If the company switches from weekly to biweekly,to an hourly, does the employee go to another tax bracket, and will this bring more back in taxes or less at the end of the year?

Does the company save a cost out sourcing going to weekly to biweekly for hourly paid employees?

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Taxes Should Stay the Same
by: Best Business Payroll

Going from a weekly to bi-weekly pay period can be an adjustment for everyone involved, but the tax implications should stay the same with both pay periods.

For simplifications sake, say you make $500 a week gross pay and have 15% taken out for taxes ($75). When you switch to bi-weekly your gross pay for that two week period will then be $1,000 with 15% taken out ($150). The amounts will come out the same by the end of the year and the amount you get for a refund should be the same.

Yes, your employer will most likely be saving some money on payroll processing because payroll will only need to be run 26 times a year instead of 52, but it should not affect how much you get for pay.

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