We start bi-weekly pay beginning March 20th. How does this affect the months that have 5 weeks. Do we actually lose two weeks a year? May, July & October have five weeks. Right now I will get $1143.12 every two weeks. I figured it first by the 52 weeks, then divided it by 12 then by two. I come up with $1238.38. Is this correct?
Your question is unclear about whether you are moving from bi-weekly payments or to bi-weekly payments. Let's calculate each case.
Bi-weekly pay means you will be paid every two weeks. The amount for each payment will be your annual salary divided by 26, possibly with a small decrease (around 0.3%) to account for the fact that years are slightly longer than 52 weeks (i.e. there are slightly more than 26 two-week periods in a year), and possibly an even smaller adjustment to take account of the fact that some years are a day longer than that. You will be paid literally every 14 days (with some adjustments if a payday falls on a holiday)
If you are going to be paid twice a month, then each payment will be your annual salary divided by 24. Typically you are paid on the same days of each month - for example the 1st and the fifteenth, or the last business day before those.
Biweekly pay for salaried employees is typically calculated as
Annual-salary / 26.
Twice a month pay for salaried employees is typically calculated as
Annual-salary / 24.
If you were getting paid twice a month and now are getting paid every other week, your paycheck will be roughly
( Twice-a-month-paycheck-amount * 24 / 26 ). If you were paid $1000 twice a month, you'll be paid $923 every other week.
$1000 * 24 = $24K and
$923 * 26 = $24K.
You will get paid every other week regardless of month boundaries on a biweekly pay cycle.
One point that I don't see covered in the other answers yet:
How does this affect the months that have 5 weeks. Do we actually lose two weeks a year?
I get paid every two weeks, and pay day is always a Friday. Some months, I get paid 3 times - which is always great. If you live within your means, it's like an extra paycheck. All other months, I get paid two times.
How many months a year do I get paid 3 times? 2. It will always be two, because there are 12 months. If you get paid twice a month, that's 24 pay checks, which is 2 shy of 26 pay checks - what we would expect if we were paid every two weeks. That means those 2 extra pay checks need to fall somewhere, and they will be on the months where your pay day is hit 5 times.
For example, in 2014, there are 4 months with 5 Fridays: Jan May Aug Oct
I got paid the second Friday of January, so I only got 2 checks in January. I will be paid on the first Friday of May, which means I will get 3 checks in May. My other triple-check month this year is October, so of course I am only going to be paid twice in August.