Accounting, Payroll & Pension Issues/Payroll Switch to 24 periods from 26

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Expert: - 1/16/2010


Question
Hello,
Recently my company switched payroll from 26 periods to 24 periods, paying on the 15th and 30th of each month. The last pay date in 2009 was 12/24/09, for the pay period from 12/7/09 to 12/20/09. The first paycheck in 2010 was on 1/15/10, for the pay period from 12/21/09 to 1/10/10. The first paycheck in 2010 was only for my annual salary divided by 24, but the pay period was three weeks long.  It seems like I have been shorted and there are additional wages that I should receive. Has this payroll switch been handled correctly?
Thanks!


Answer
If the first check was for your annual salary divided by 24 and you only get one check in January than you are being shorted one pay period because you will only then have 23 payperiods in the year unless they are making up the pay period somewhere or paying a second check in January.

When paying 24 payperiods a year you should have 2 payperiods for each month.

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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