1. What is Semi-Monthly Pay?

Semi-monthly pay means employees are paid twice each month, typically on the 1st and 15th or 15th and last day of the month. In Ontario, this is a common payroll schedule for salaried employees.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Annual Salary — Total yearly compensation before deductions
• 24 — Number of pay periods in a year (12 months × 2 pay periods per month)

Explanation: This calculation divides the annual salary evenly across all 24 pay periods in a year.

3. Importance of Semi-Monthly Calculation

Details: Understanding your semi-monthly pay helps with budgeting, financial planning, and verifying payroll accuracy in Ontario's employment context.

4. Using the Calculator

Tips: Enter your gross annual salary in Canadian dollars. The calculator will show your pre-tax pay for each semi-monthly period.

5. Frequently Asked Questions (FAQ)

Q1: Is semi-monthly the same as biweekly?
A: No. Semi-monthly means 24 pay periods per year (twice a month), while biweekly means 26 pay periods (every two weeks).

Q2: Are deductions different for semi-monthly pay?
A: Deductions like CPP and EI are calculated based on annual earnings, but the amounts deducted per pay period will differ between pay schedules.

Q3: How does this differ for hourly employees?
A: This calculator is for salaried employees. Hourly employees in Ontario are typically paid biweekly with pay varying by hours worked.

Q4: Does this include Ontario tax deductions?
A: No, this shows gross pay only. Net pay would be lower after federal/provincial taxes, CPP, EI, and other deductions.

Q5: Why 24 pay periods?
A: Semi-monthly means two pay periods per month (2 × 12 months = 24 pay periods annually).