How to Handle Salaried Employees When Changing Paydays
Our company is looking at changing our paydays mid-year. We have a bi-weekly payroll- both exempt and nonexempt. For 2012 to date our payroll has been calculated based on a 26th payday year for our Salaried folks (1/26th of annual salary each payday). By changing the payday our "26th" payroll will be pushed into 2013.
As a result our Salaried employees will be paid 1/26th of their annual salary 25 times this year. For example, an employee with a salary of $52,000 will receive 25 payment of $2000 for a salary of $50,000.00. I feel this is incorrect and that the bi-weekly pay should be adjusted to compensate for only 25 paydays instead of 26. Is this correct?