Expert: Shirley McAllister, CPP, PHR - 7/28/2010

Question
Our company is changing from a semi monthly to a biweekly pay frequency in the middle of the year.  Our employees are upset that they are losing one week of pay and will not recieve their full salary in 2010.  Our last semi monthly payroll would have been on 12/31/10, but with the new biweekly frequency our last payroll is paid on 12/24/10.  The last week will be paid in the first payroll of 2011.  I am unable to explain this in a way that the employees understand.  Do you have any suggestions.

Answer
Explain that this is a good change. This is the only year this will be happening and after this they will receive 26 checks a year instead of 24 checks a year so two months in the year they will have 3 payroll checks.

Also they will get paid on the same day every other week so it will make it much easier to know when their paydate is.

Every year the last payroll of the year will be in the beginning of the next year so they will receive their total salary.

Change happens and we need to be able to adapt to it and go forward. In the future they will really like the new payroll. Our employees went through the same thing a few years ago, but now they really like it. Time goes in one friday and they are paid the next friday.

Let them know that the change has been made and that it will happen. They are not losing a weeks pay, it is simply being paid on a different payroll.  Since it is being reported in 2011 that is one less payroll they have to pay taxes on this year.

Shirley