27 pay periods again for biweekly payroll
how to handle 27 biweekly pay periods in 2011
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Linda Jo
Questions asked: 9
Questions answered: 16
Points earned: 31
Questions answered: 16
Points earned: 31
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01/12/11 10:48am PST
Viewed by asker 01/26/11 6:48pm PST
Viewed by asker 01/26/11 6:48pm PST
7 Replies
abctax55
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01/12/11 11:53am PST
How do you get 27 bi-weekly payperiods?
27 x 2 = 54....last time I checked there's only 52 weeks in the year.
Will Rogers has been quoted as saying, “The only difference between death and taxes is that death doesn't get worse every time Congress meets.”
01/13/11 6:21am PST
I assume you are referring to bi-weekly salaried employees?
That has always been confusing to payroll preparers in the past...it happens some times as it did this past year.
You can't over think this or it will drive you crazy. Just put in the annual amount for the salaried employee and let QB figure out the rest. The difference will be made up in the following year.
Hope that helps...
01/18/11 12:08pm PST
Thanks for your knowledge and understanding of the problem cathyjk. Appears other haven't had it happen to them. I moved the last (27th) payday in 2010 to 01.03.11. The next pay date was 01.14.11.
I finally took the salary and divided it by 27 and then multiplied it by 26 and changed(lowered) the annual salary to come our correctly in 2011. So now I don't have that problem in 2011 nor 2012.
01/18/11 8:17pm PST
You can get into pretty big trouble for doing this if your salaried employees get upset (and they should get upset.)
01/26/11 6:48pm PST
@BRConsulting, it has nothing to do with pay PERIODS...the problem lies with pay DATES!
Why would they be upset, they are being paid their annual salary and there's no legal trouble at all. They are getting their full salary for the year spread over 27 pay DATES. Please send a link to validate your comment of "big trouble"? How would anyone budget for an ANNUAL salary if you paid them and additional paycheck in the year?
01/27/11 8:56am PST
Latest post
RE: Why would they be upset, they are being paid their annual salary and there's no legal trouble at all.
Yes, there will be if someone goes to your local labor board and complains. No state allows an annual salary. Most require the salary to be quoted and paid at least monthly.
RE: They are getting their full salary for the year spread over 27 pay DATES.
That's the wrong way to think about it. The 27 pay dates are for 54 weeks of pay, not 52. By lowering the salary you are cheating the employees.
RE: Please send a link to validate your comment of "big trouble"?
There have been several discussions here on this. Here's a link to one that itself has a few links and the conclusion was what I'm supporting. See community.intuit.com/posts/27-pay-period-year
RE: How would anyone budget for an ANNUAL salary if you paid them and additional paycheck in the year?
Payroll and HR rules at the Federal and State levels don't care a whit about your budget. You can only budget an annual or monthly or quarterly amounts evenly for payroll if your payroll is consistently dividable within those periods. That's partly why semi-monthly payroll periods exist, as they are exactly 2x per month and are more predictable.
01/15/11 2:27pm PST
Based on your paydates, the system is simply telling you that there will be 27 paychecks issued with dates within 2011. There will still only be 26 pay PERIODS, but they frequently overlap year ends.
