Expert: Shirley McAllister, CPP, PHR - 1/16/2009

Question
This is an offshoot of this question:
http://en.allexperts.com/q/Accounting-Payroll-Pension-1418/2008/12/changing-26-2...

We are also changing from a 26 (every two weeks) pay period, to a 24 (twice a month) pay period in 2009.

Here is the question for our situation... salaried employees received a check for 1/26th of their pay on Jan. 6 (under the old system, paying for a two week period from Dec 19-Jan 1).

I can see two ways of looking at this.  One is, we have already been paid for Jan 1, and we will get paid for work this year. And our pay for work in 09 gets paid on the reamining 23 checks this year, plus the first check of 2010.

Based on what you claimed in your other payroll question response though, we should be getting paid in our calendar year for our salary, and they should make up 1/24-1/26 of our salary on some paycheck this year to make up for the 1/26 check they paid us for the first paycheck of 2009.

Can you say which side is right, or are their other variables that need to be known payroll wise to decide that?

Answer
What I said was that if you earn 50,000 a year than you should be paid that 50,000 a year. It should all be paid in one year and it should be on your W-2 at the end of that year. As long as you are receiving that amount in a year it makes no difference how many pay periods are covered.

If you are paid a last payperiod in 2009 for 2008 and one in 2010 f0r 2009 it is okay as long as it is consistent and your amount for the year is your annual salary. The first year it switches the company must make sure that in the switch the total annual salary is paid, so if changing makes it off they must make the amount up to make sure you are paid your whole salary for the year.

On the other posting the person was not being paid for the last week in the year but they were starting the new year with the 24 pay periods for that year. It made her W-2 short a part of a payperiod and that is not right. They had paid 26 pay periods and switched to 24 mid way through the year with made her incorrect.

Shirley