Accounting, Payroll & Pension Issues/Payroll Cycle Change

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Expert: - 3/7/2011


Question
I am a salaried employee and my company is changing from semi-monthly to bi-weekly.  There is a one-week lag being created and as a result I will not be paid my full salary in 2011.  I know the company is saying that it will be made up in the first paycheck of 2012, but it seems to me I will only get back the week of pay when I leave the company.  As a salaried employee, shouldn't I receive my full pay during the calendar year, even given the change?

Answer
It is legal to change pay cycles and hold back 1 weeks pay in order to give payroll time to process. This is done in thousands of companies across the land. It is actually very effective and you will like bi-weekly very well once the initial shock wears off.

I did this a few years back and all the employees love it. Time goes in one Friday and I pay on the next Friday.

Yes this is legal and it actually is a standard procedure.

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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