Accounting, Payroll & Pension Issues/24 Vs 26 plus commission

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Expert: - 1/7/2010


Question
Late 2008 we switched from 26 pay periods plus a separate monthly commission check to 24 pay periods which included commission on the second check (typically, sometimes it when to the first check of the new month). Does the corporation get a tax benefit by using the 24 pay period? This is the first company I've ever worked for that uses this system. Over a year later, I'm still not used to it nor do I like it.

Thanks!

Answer
The only benefit is that there are less payrolls to process. This is usually the reason companies go from bi weekly to semi monthly.  Either payroll period is exceptable under law, it is at the employer's option.

I personally like the 26 payperiods which is what I pay at my company, but I have paid semi monthly payroll in the past.

Shirley

Accounting, Payroll & Pension Issues

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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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