How do semi-monthly and bi-weekly payroll schedules impact employer cash flow?
Semi-monthly may be beneficial for employers with more stable cash flows as companies give their employees paychecks on a set date or two for any given month. This makes it easier to determine the money required, and create plans to source for this money. Another disadvantage of bi-weekly payroll is more unpredictable and change occurs in months that are paid in the three periods in a place of two. These “other” payrolls can put a lot of pressures on the cash flow especially where tight margins describe the company. Managers and payroll coordinators must take some extra measures to ensure that there is enough money to meet these occasional third payrolls in a particular month.
Source: https://accountingbyte.com/semi-monthly-vs-bi-weekly/