Did you know that there was a payroll leap year?
If you pay weekly or biweekly, you may have an extra pay period in 2015-27 biweekly dates instead of 26 or 53 weekly dates instead of 52 depending on what day of the week you cut payroll. The extra day can cause both financial and legal headaches if not handled correctly.
Most calendar years have 26 biweekly or 52 weekly pay periods but this year you may have 27 or 53 pay periods. The extra biweekly pay date occurs only every 11 years, the extra weekly pay date occurs every 5 years.
Normally a salary is divided by the number of pay periods in a year so that you can equally divide up the annual amount over the year. This year you need to divide by 27 or 53 instead of 26 or 52.
For example Sally's annual salary is $50,000. Normally her weekly gross pay would be $1923 (26 biweekly) or $962 (52 weekly). This year instead of $50,000, she will get $51,921 (27 pays) or $50, 986 (53 pays) if you don't recalculate her pay.
Before you recalculate an employee's pay, make sure that you review labor agreements, contracts, or other documents that set compensation. If a specific amount per pay period is specified you may need to consult a labor lawyer.