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So, even though our salaried employees sign a paper when hired that they will make $52,000 annually (not $2,000 per pay period) , for example, then this year it is correct for them to make $54,000?
QuickBooks will base the calculation on the annual rate and payroll schedule, Fincoord.
Once an employee is set up for $52,000 annually, our program will calculate the payment based on that rate. Regardless if there are 26 or 27 pay periods.
Let's just ensure the salary rate and payroll schedule are set up correctly.
You can refer to the information provided by brconsultingid2. Or, you can refer to your accountant if you have other accounting concerns.
We're here if you have other payroll concerns. Don't hesitate to click the Reply button.
RE: Once an employee is set up for $52,000 annually, our program will calculate the payment based on that rate. Regardless if there are 26 or 27 pay periods.
On this topic, using terms with precise meanings will help:
- When paying every other week there may be 26 or 27 pay dates in a year.
- Still, there are always 26 pay periods in a year when paying employees every other week, or more precisely, 26.07 pay periods, since 52 weeks is 364 days, not 365.
Since each there is one extra day each year, two every leap year, then if your pay dates consistently fall on a specific day of the week, every five or six years you will have an extra pay date.
This table shows the counts of the days of the week, where 53's are in blue and leap years are banded (2020, 2024, and so on.) This year, if you pay on Wed or Thursday, there will be 53 pay dates. But if you pay on any other day of the year there will be 52 pay dates. For the same number of work days:
Does your answer count for Canadian businesses as well or only for USA?
We have completed 3 payroll payments in Jan. '20 and quick-books divided the annual salaries by 26 instead of 27 As of this day they have not made any adjustments.
Our last payment in 2020 will be Dec. 31'20 because Jan. 1'21 is a bank holiday.
We have 27 pay periods in 2021 - and our salaried employees paychecks are still being calculated on 26 periods instead of 27. I have reached out to support 3 times and still have not been able to get this fixed. The last call they told me there wasn't anything they could do and I needed to add an extra pay period. WHAT?!?!? It's already scheduled - I'm so very disappointed in QB support yet again
RE: We have 27 pay periods in 2021 - and our salaried employees paychecks are still being calculated on 26 periods instead of 27. I have reached out to support 3 times and still have not been able to get this fixed.
As has been pointed out many times on this thread, there is nothing to fix. If the reps insinuated that there is, then they don't understand payroll.
You may have 27 pay dates this year, but you still have only 26 pay periods (52 weeks / 2.)
The only one continuously pointing this out, is you and I and many other experts out there do not agree with your argument. QB has agreed in posts that salaried individuals pay should adjust based on the number of pay checks. The SHRM (Society of Human Resource Management) agrees that businesses have options to either allow the additional pay period (therefore resulting in pay during the year higher than there salary) or adjust the per pay to reflect the annual salary divided among the 27 pay periods. https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/2020-leap-year-highlights-extra-... There are many other articles out there from other payroll processing companies that agree businesses have the choice of how to handle 27 pay period years.
Obviously this depends on how contracts/employment offers are worded, but for all of our salaried individuals - they've agreed to an annual salary amount (not a per check amount or hourly amount).
@qbsupport why are these posts allowed and not monitored for correct information?
The solution that we did was to change the salary amount in quickbooks to reflect the 27 pays. After the 27th payroll we adjusted the amount back to the 26 pay amount. You have to make yourself a reminder to do so and it can make things quirky. Make sure you keep notes on what the actual salary is when you do this. would be great for quickbooks to get a solution for this.
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