Payroll Cycle

What is Payroll Cycle?

A payroll cycle is the recurring schedule a company follows to calculate wages, withhold taxes, and issue payments to employees or contractors. Common cycles include weekly, biweekly, semi-monthly, and monthly pay periods.

How Payroll Cycles Work

Payroll cycles vary by country, contract type, and company preference. Each cycle determines:

• When pay is calculated (e.g. 1st–15th)

• When payments are made (e.g. 5th and 20th)

• Compliance rules (e.g. monthly in Brazil, semi-monthly in Mexico)

For global teams, managing multiple cycles across borders adds complexity:

Platforms like SigmaRemote help unify these timelines in one dashboard.

Why Payroll Cycles Matter

Understanding and choosing the right payroll cycle is crucial because it affects:

• Contractor trust – Predictable payments reduce churn

• Cash flow – Different cycles create different funding demands

• Compliance – Many countries legally require a specific cadence

• Operations – Smooth payroll boosts team morale and reduces disputes
  
  

Example Use Case

A U.S. startup hires contractors in Brazil, Argentina, and Nigeria.

Each country has different payout expectations. With SigmaRemote, they consolidate cycles into a biweekly contractor-friendly flow while maintaining local compliance and issuing automated reminders.

Related Glossary Terms

• Global Payroll

• 13th-Month Salary

• Cross-Border Compliance

• USD Wallet

• Payroll Deductions

Explore More
📘 [How SigmaRemote syncs global payroll cycles →]
📘 [LATAM Payroll Timing Guide →]
📘 [Compare Pay Schedules Across Markets →]