Expert: Arthur Naman - 1/1/2009

Question
QUESTION: 2008 Salary $76,000.00 biweekly pay 26 weeks. Friday payday
April 18th 2008 was last paycheck $2923.08 under old plan, Pay period ending Sunday 13th.
April 25th received a check for 14th-18th $1461. May 9th started new payroll $2923.08 pay for April 19th to May 2.
My last paycheck shows my gross salary is short by 1 week $1461.00. I know May was suppossed to be a 3 pay check month. My company claims all the weeks are covered and they owe me nothing. They even tried to tell me it would be paid in 2009. Do you have any advise please...I know I'm not nuts. But I can't back up the 26 weeks to be paid annually in writing anywhere. Can you give me advise? Since May this has screwed up my budget and I'm still trying to catch up.
Thank you.
Respectfully,

ANSWER: If your annual salary is $76k, meaning no raises, bonuses, etc., then that's what it should be. It doesn't make any difference how often you are paid, semi-monthly, bi-weekly, etc. the annual total should still be $76k. There is no logic for any other result, only evidence of a miscalculation on the payor's part.


You mentioned a pay period change, but did not describe what it was. However, as I have described, in my opine, it does not matter -- as I said your annual salary should be $76,000 regardless.

The question is really who to suggest you talk to to resolve the issue -- HR department, your boss, boss's boss, etc.

It is conceivable that an attempt to correct the error with additional pay in 2009. Keep in mind that if this done, your 2009 annual pay should be your annual salary plus the additional amount.

Good luck and Hope you have a good new year.


Good luck.

---------- FOLLOW-UP ----------

QUESTION: Thank you for taking time to address this issue. I do feel  vindicated! The year before would have been $76K the year after would $76K so of course this year needed to be $76k as well.
I am looking for a document;standardized payroll accounting practice, that supports differences or common errors in salaried wages, annual vs. pay period. For them, all weeks are accounted for, and I can't seem to convince them not to keep showing me that all the weeks are covered. When you move payroll one week it took away the 3 paycheck month. I get it but they don't. Also this is a relatively small business and personal friends.
I do believe, they are acting in good faith, with their current payroll accounting methodology.  Thank you for being so gracious with your time and expertise.

Answer
I am not aware of any accounting standards, payroll standards or anything else to support your contention. Legally, if you are to be paid "x" amount per year and are not paid that amount then you may have legal options if you wish to bring suit. You would have to talk to an attorney, probably a labor attorney for more details on your legal options.

As I said before, no matter how it is split up, your salary should still be $76,000 per year. If it is not, then that, in and of itself, indicates an error was made. To me the issue at this time is not their calculations per week, or how many pay periods in May or anything else except the total annual salary paid to you.

If they do not see this, then I do not know what to tell you.

Perhaps you might put on a spreadsheet each time period and the gross salary for each time period -- first the amount paid, then another column with the correct amounts -- for the whole year so that the difference is apparent. Then it might be apparent which weeks were not covered or calculated correctly.

Hope this helps.