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Accounting, Payroll & Pension Issues/will payroll change to biweekly hurt my 401k

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Expert: - 2/1/2011


Question
My company is changing from a weekly pay to biweekly.  Since they will be holding one week's pay won't I be missing out on interest on my 401k contributions every other week?

Answer
Not really.  The difference is miniscule, and balances out in the long-run.  For instance, you might miss out on $2 one week that the investment is performing well, but NOT lose $2 in another week that the mutual fund/stock/etc. is performing poorly that you would have lost had you had the extra money invested.

Hopefully that all makes sense.

All the best,
Vanessa

Accounting, Payroll & Pension Issues

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Vanessa D. Powell, CPA

Expertise

I am experienced with general bookkeeping, payroll, journal entries, adjusting entries, all types of pension accounting, compliance issues, ERISA, benefit plan auditing, financial statements, payroll tax, Form 5500, retirement planning, and related issues. Please no homework questions. Only US accounting, please.

Experience

I am a CPA in Southern CA. I audit not-for-profit organizations, corporations, and employee benefit plans for the large accounting firm I work for, as well as performing other attest services, planning, and tax services.

Organizations
California Society of CPAs, American Institute of Certified Public Accountants

Education/Credentials
Licensed CPA in the state of CA. Graduated summa cum laude from Colorado Technical University. In order to keep my license, I take 80 hours of CPE every two years. Much of it in the field of accounting, auditing, and employee benefit plans.

Awards and Honors
Graduated summa cum laude (with highest honor).

Past/Present Clients
I have clients from all over the world, in nearly every industry. Most of my audit clients are employee benefit plans and not-for-profit entities. Most of my compilation engagements are manufacturing, agriculture, and construction.

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