Payroll Frequency: Weekly, Bi-Weekly, Semi-Monthly, Monthly
Montana doesn't mandate a specific payroll frequency, but you must pay employees regularly and consistently. Here's the practical comparison for choosing yours.
Weekly (52 paychecks/year)
Best for: hourly workforce with variable hours, construction, restaurants.
Employees love it. Payroll costs are higher (52 runs) and reconciliation is heavier.
Bi-weekly (26 paychecks/year)
Best for: mixed hourly and salaried, most small businesses.
Two months a year have three paychecks, which trips up cash flow planning if you don't watch for it. Most popular schedule in the U.S.
Semi-monthly (24 paychecks/year)
Best for: salaried-only workforces, professional service firms.
Same amount every check — clean for salaried employees. Harder to run for hourly employees because pay periods don't align with weekly hour reporting.
Monthly (12 paychecks/year)
Best for: no one, in most cases. Employees hate it and it stresses their cash flow.
Allowed for exempt salaried employees but rarely a good idea.
The practical recommendation
Hourly workforce: weekly or bi-weekly.
Salaried workforce: bi-weekly or semi-monthly.
Mixed: bi-weekly for everyone keeps it simple.
Whatever you pick, publish the schedule in writing and don't change it casually — payroll frequency changes are treated as adverse to employees.
A quick disclaimer
This article is general information for Montana small business owners, not tax, legal, or accounting advice for your specific situation. Rules change, and how they apply depends on facts we don't know about you. Before acting on anything you read here, talk to a qualified professional. If you're a Montana business owner and want a real conversation about your books, payroll, or tax, that's what Marlow Accounting is here for — call 406-290-1214 or schedule a discovery call.