Accounting, Payroll & Pension Issues/Payroll cycle change.

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Question
Hi Shirley,

Recently my company went through a cycle change from Tuesday-Monday to Sunday-Saturday. I am a salaried employee and in the transition period I was short one day pay. (which I don't understand given that I am salaried).  

I saw your previous comments on a hourly employee situation and a cycle change (Jan 19, 2009) but I can't seem to reconcile this for a salaried employee.  Isn't my wage the annual amt/ 26 pay periods, since we are paid bi weekly?  Could you please help "de-confuse" me and help me understand why it was ok for my pay to be short a day.

Thank you so much.

Answer
You are only short a days pay if at the end of the year your paychecks do not add up to your annual salary. The salaried employee is paid an annual salary to do the job, this salary is divided up into the 26 pay periods. If you still have the amount of your annual salary at the end of the year than you are not short.

The pay periods may have fallen in an odd manner, however, it should still be the same at the end of the year.

I don't know why a pay check would be short a days pay, it should not be.

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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