There is an unusual wage issue for 2015 that will affect many employers that pay exempt employees on a bi-weekly basis (rather than weekly, semi-monthly or monthly).
With 52 weeks in a year, there normally are 26 bi-weekly pay periods in a calendar year. In 2015, however, there will be 27 for many employers.
Different employers handle this in different ways. Some companies will divide your total annual pay by 27 instead of 26 to evenly distribute your wages, while others may simply treat the extra paycheck as a “bonus.” In either case, this has implications for many of your benefits:
For example, if an employer has agreed to pay an exempt employee a salary of $75,000 per year, they would have paid the employee $2,884.62 in each of 26 bi-weekly paychecks in 2014. But if the employer pays the employee that same $2,884.62 in each of 27 bi-weekly pay periods in 2015, the employer would end up paying the employee $77,884.74 in 2015 – not the $75,000.00 salary it had agreed to pay.
Due to the varying ways that biweekly paychecks can be calculated, not everyone will have an extra check in 2015. Some may experience it the next year, or some may have even had it this year already. In any case, it’s worth checking with your employer every year to determine your pay schedule so you can plan your benefits accordingly
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