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Accounting, Payroll & Pension Issues/semimonthly payroll
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Question
Say you as an employer, has a semi monthly payroll, checks are typically dated the 1st and 16th. At the end of the year, is it "permissable" to instead date that last paycheck the 31st? It seems to me that it would be only a timing issue. The current year would have 25 paychecks and next year would have only 23 - unless the same treatment is done next December. I guess the question is: Are you bound by strict pay check dates when you are semimonthly (you are allowed ONLY 24 paydates in that year) - or is it just that the pay period that needs to be adhered to?
What would happen is it would cause more tax for the year with the 25 pay periods. This is not the right way to do it. They pay periods need to be adhered to . If the paydates are the 1st and the 16th than they should always be the 1st and the 16th.
Shirley
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Answers by Expert:
Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.
Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations
SHRM, APA, I.O.M.A.
Publications
I.O.M.A. and BNA
Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors
APA Hotline Citation of Merit for last 8 years.
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