First payroll for the year 2026 Paydate Confusion

Dear Experts,

We operate on a BiWeekly payroll schedule, and our first payroll for the year 2026 is scheduled for a pay date of January 1, 2026, which coincides with a holiday. Hence, the customer has requested that salaries be disbursed on December 31, 2025. Will this adjustment have any implications for taxation?

The payroll period is set up as follows:

Period Name - 1 2026

Payroll Period Start Date - December 15, 2025

Payroll Period End Date - December 27, 2025

Pay Date - January 1, 2026.

We are considering processing all payroll activities with the pay date of January 1, 2026.

However, when generating the bank file using the "Make EFT Process" function, we intend to override the pay date.