Some employers may have an extra payday to process in 2024 due to it being a leap year. In a normal year, one day of the week will occur 53 times (52 weeks x 7 days/week = 364 days). In leap years, which have 366 days, two days of the week will occur 53 times. For employers that pay on a weekly or biweekly basis, an extra payday may occur – 53 rather than 52 for weekly payers or 27 rather than 26 for biweekly payers – if those paydays fall on the extra days of the week.
In 2024, this problem arises for some weekly and biweekly payers with a Monday or Tuesday payday, because January 1 was a Monday and 2024 is a leap year (although biweekly payers whose first payday of the year was January 8 or 9 will not have this issue).
Pay Reductions
Employers with an extra payday may choose to recompute weekly or biweekly paychecks for salaried employees who earn a certain amount annually. Employers can reduce salaried employees’ pay for each pay period in a year when faced with an extra payday, so long as there is no contract guaranteeing a certain amount of pay each payday and the pay is not reduced below the minimum required by state or federal law. Hourly employees must always be paid their agreed upon hourly wage for all hours worked.
For salaried, exempt employees, many employers do not recompute their weekly or biweekly pay. One reason is the probability of strained employer-employee relations if wages are reduced for each pay period.
To learn more about federal and state laws, regulations, and information to keep your company’s payroll operations in compliance, check out Payroll Source Plus!
Rayna Alexander, Esq., is Editor of Payroll Information Resources for PayrollOrg.
