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Accounting, Payroll & Pension Issues/Bi-Monthly Pay Period & Payroll Deduction

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Expert: - 2/2/2010


Question
Please help.., this is driving me crazy... I accepted a new salary exempt position and started on Jan 4th, which pays bi-monthly (1st and 15th of the month)... I worked week 1 M-F 40+ hours, and week 2 M-F 40+ hours for a total of 80+ hours... (Accounting uses a 2080 yr. to determine hourly rate) Since the pay period runs from the 1st thru the 15th.., I was shorted 8 hours as a deduction for Jan 1st, New Years Day... I feel like I was screwed.., but is this the correct calculation and a common practice..?

Thank you so much for your response...

Answer
Hours do not matter to a salaried employee. The salaried employee is paid on an annual salary divided into pay periods not run on hours at all.

You were not paid for Jan 1 because you did not start work until Jan 4th and on Jan 1st you were not an employee so you were not paid for that day. This is legal.

It is legal not to pay for any holiday if the company does not wish to pay for it, it is also legal to not pay for a holiday until the person has worked for the company 30, 60 or 90 days depending on company policy.

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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