Understanding Payroll Item Frequency

Last updated: May 28, 2026

Overview

The Frequency setting determines how a benefit, allowance, deduction, or earning amount is applied during payroll processing. Selecting the appropriate frequency ensures amounts are calculated and distributed correctly across payroll runs.

The following frequency options are available:

  • Per Payroll

  • Per Month

  • Non-Recurring


Per Payroll

The Per Payroll frequency applies the configured amount on every payroll run. This option is typically used for recurring amounts that should remain consistent each pay cycle.

Example

If a benefit is configured as:

  • $50 Per Payroll

The employee receives or is deducted:

  • $50 on every payroll processed

If payroll is processed weekly, the amount applies weekly. If payroll is processed bi-weekly or semi-monthly, the amount applies each time payroll runs.

Percentage-Based Amounts

Percentage-based values only support the Per Payroll frequency option. This is because percentages are calculated based on payroll earnings for an individual payroll run. Monthly percentage calculations are not supported.

Common Use Cases

  • Recurring deductions

  • RRSP contributions

  • Fixed payroll allowances

  • Standard recurring benefits


Per Month

The Per Month frequency applies a total monthly amount and distributes that amount according to selected payroll rules. Unlike Per Payroll, the configured amount represents the total value intended for the month rather than for each payroll run.

Example

If a benefit is configured as:

  • $100 Per Month

The system determines how the $100 should be applied based on:

  • Payroll schedule frequency

  • Selected payroll distribution option

  • Date basis configuration

Monthly Distribution Options

When using Per Month, additional configuration options determine which payrolls within the month receive the amount. The following apply on options are available:

  • All Payrolls

  • Specific Payroll(s)

  • Last Payroll

Apply on All Payrolls

The Apply on All Payrolls option evenly distributes the monthly amount across all payrolls in the month.

Example — Weekly Payroll

A monthly amount of $100 is configured to apply on All Payrolls.

Result

Payroll

Amount Applied

First Payroll of the Month

$25

Second Payroll of the Month

$25

Third Payroll of the Month

$25

Fourth Payroll of the Month

$25

Note: Because some payroll schedules may have a different number of payrolls each month, the distributed amount may vary between payroll runs. In the example above, if a month contains five payrolls instead of four, the amount would be distributed evenly across all five payrolls.

Selective Payrolls

The Selective Payrolls option allows the monthly amount to apply only on specific payrolls within the month. Instead of distributing the amount across all payrolls, selected payroll positions receive the amount.

Available selections may include:

  • First Payroll

  • Second Payroll

  • Third Payroll

  • Fourth Payroll

  • Last Payroll

Note: The available payroll selection options depend on the employee’s payroll schedule. For example, if a month contains four payrolls instead of five, the available options would only display First Payroll, Second Payroll, Third Payroll, and Last Payroll.

Example — Semi-Monthly Payroll

A monthly amount of $100 is configured to apply on the First Payroll only.

Result

Payroll

Amount Applied

First Payroll of the Month

$100

Second Payroll of the Month

$0

Example — Weekly Payroll

A monthly amount of $100 is configured to apply on the First Payroll and Third Payroll.

Result

Payroll

Amount Applied

First Payroll of the Month

$50

Second Payroll of the Month

$0

Third Payroll of the Month

$50

Fourth Payroll of the Month

$0

No amount applies on the remaining payrolls.

Last Payroll

The Last Payroll option applies the monthly amount on the final payroll occurring within the month. This option is useful when payroll amounts should only process once the final payroll of the month is reached.

Example - Weekly Payroll

A monthly amount of $100 is configured to apply on the Last Payroll only.

Result

Payroll

Amount Applied

First Payroll of the Month

$0

Second Payroll of the Month

$0

Third Payroll of the Month

$0

Last Payroll of the Month

$100

Note: For payroll schedules where the number of payrolls changes between months, the system automatically determines which payroll is considered the last payroll.


Date Basis

The Date Basis setting determines how the system identifies which payroll belongs to a specific month.

This affects payroll selections such as:

  • First Payroll

  • Last Payroll

  • Selective Payroll distribution

The available date basis options are:

  • Pay Date

  • Period Start Date

  • Period End Date

Pay Date

When using Pay Date, payrolls are assigned to a month based on the payroll payment date.

This option is commonly preferred when organizations think about payroll timing based on when employees are paid.

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Example calendar reference for the scenario below

Example

Item

Value

Payroll Period

April 28 2026 – May 4 2026

Pay Date

May 8 2026

Payroll Considered As

First Payroll of May 2026

Period Start Date

When using Period Start Date, payrolls are assigned to a month based on the payroll period start date.

This option is commonly used when organizations track payroll according to worked periods rather than payment timing.

de3c859b-1d9f-4d47-9ccd-477c8e1a08ce.png
Example calendar reference for the scenario below

Example

Item

Value

Payroll Period

April 28 2026 – May 4 2026

Pay Date

May 8 2026

Payroll Considered As

Last Payroll of April 2026

Period End Date

When using Period End Date, payrolls are assigned to a month based on the payroll period end date.

This option is commonly used when organizations want payrolls grouped according to when the payroll period finishes.

de3c859b-1d9f-4d47-9ccd-477c8e1a08ce.png
Example calendar reference for the scenario below

Example

Item

Value

Payroll Period

April 28 2026 – May 4 2026

Pay Date

May 8 2026

Payroll Considered As

First Payroll of May 2026


Why Date Basis Matters

Date Basis directly impacts:

  • Which payroll is identified as the first payroll of the month

  • Which payroll is identified as the last payroll of the month

  • How monthly amounts are distributed

Different organizations may interpret payroll timing differently, which is why both options are available.


Important Considerations

  • Percentage-based values cannot use the Per Month frequency option.

  • Monthly distributions may vary depending on payroll schedule frequency.

  • Weekly payroll schedules may produce different split amounts across months.

  • Existing configurations created before the updated frequency enhancements may default to historical behaviour settings.

  • Missed payroll occurrences are not automatically prorated retroactively.

  • Changing frequency settings mid-month may produce unexpected distribution results.


Summary

Frequency settings determine how payroll amounts are applied across payroll runs.

  • Per Payroll applies amounts every payroll run.

  • Per Month distributes a monthly amount according to selected payroll rules.

  • Non-Recurring applies an amount one time only.

Additional monthly configuration options, including payroll selection and date basis, provide greater control over how monthly amounts are distributed across payroll schedules.