Accounting, Payroll & Pension Issues/Wages earned at End of Year

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Expert: - 1/5/2012


Question
The last pay period ended 12/31/11, and included hours worked from 12/18 thru 12/31.  When we received our checks on 1/5/12, we were told that this is the first check for 2012.  In other words, the 2011 hours effectively ended on the last pay check (12/17/11).  I was told that since we were paid in 2012, that must count in that year.  I thought that hours worked in a calendar year, applied to wages and taxes paid in that year;  they say it is when it is paid.

Answer
The wages go into the year in which they are paid. Many companies including ours pays the first check of the new year with hours from last year. That is the only way it can work with payroll processing unless you are paid only once a month.

This is normal and nothing to be worried about, the hours you were paid in Jan 2011 are from Dec 2010. It happens every year.

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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