You are here:

Accounting, Payroll & Pension Issues/Bi-weekly payroll for salaried employees

Advertisement


Question
We are going to change our pay cycle to bi-weekly pay effective 08/01/13.  How do I pay the salaried employees for 2013 and 2014?  The last pay in December 2013 will be on 12/20/13,there will be 7 days remaining, for 2013 and will be paid in 2014.  The W2 for 2013 will not reflect the full yearly amount. What are my options? How should I handle the change?

Answer
Okay have the employees been paid their full annual salary on the last payroll of 2013? If they have than you just take their 2014 annual wage and divide it by 26.

The salaried employee is paid an annual wage say it is 50,000.00. Divided by the amount of payperiods say 26 give you the amount to pay each payperiod. 50,000 divided by 26 would be 1923.07692 or 1923.08 rounded.

If in 2013 the pay periods resulted in the employee being paid their total annual wage than you owe them nothing more for 2013.  So if the employee making 50,000 in 2013 was paid 50,000 for their gross wage than you are good.

Shirley  

Accounting, Payroll & Pension Issues

All Answers


Answers by Expert:


Ask Experts

Volunteer


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.

©2016 About.com. All rights reserved.