Accounting, Payroll & Pension Issues/Payroll-26 pays to 12 month conversion

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Expert: - 11/8/2011


Question
Is there a standard accounting formula for converting 26 pay periods to 12 months expense spread by month?

Answer
I have an accrual spreadsheet in Abra that I use to accrue the amounts into the month end for the days worked in one month and paid in the next month.

I also accrue the PTO remaining at the end of the month.

My accounting team wrote my spreadsheet so all I have to do is punch in the hours and it records all the amounts for the employees and the tax amounts for the hours worked in 1 month and paid in the next month.

The next month the accrual is backed out and the new accrual is entered. It is all done in a GL posting.

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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