Extra pay period in the new year?

Q: What needs to be done to accommodate an extra pay period in the calendar year?

A: When planning for a new calendar year, we often forget there could be an extra pay period in the upcoming year.  Planning ahead prevents any last minute scrambling you may have to do for that extra period.

To accommodate this, you have two options:

1. Do Nothing

2. Change the employee’s pay for 27/53 pay periods

Option #1 – Do Nothing

What does this mean?? Just that. Leave your pay cycles alone and you will end up paying each employee extra for the year.

This results in a larger annual salary than budgeted for. While this will add extra cost to the company, it is the simplest and the most commonly used in the industry