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Patti17
Level 1

Payroll date of Jan. 1, 2021.

We get paid biweekly. The first paycheck of 2021 falls on Jan. 1, 2021, New Years Day. I don't want the Direct deposit checks to be dated or available to employees before 1/1/21.  Is this a problem?

8 Comments
FritzF
Moderator

Payroll date of Jan. 1, 2021.

Welcome and thanks for visiting the Community, @Patti17.

 

Normally, Direct Deposit (DD) 2-day lead time, which means you need to submit the payroll by 5:00 PM PST 2 business days before payday. Since the first paycheck for 2021 falls on New Year's day, choose another banking date to pay your employees if you are paying by direct deposit. You can also give out handwritten checks along with printed pay stubs. Based on the rules of constructive receipt, these wages should be reported in the 2021 tax year because of the 2021 check date.

 

Before preparing your last payroll of 2020 or the first payroll of 2021, verify the year in which the wages should be reported:

 

  • 2020 wages should have a 2020 check date;
  • 2021 wages should have a 2021 check date (1/1/2021 or later).

 

To learn more about how your employees get paid on time when there’s a holiday. I suggest checking out this article: How do federal holidays affect my direct deposit?

 

I'm also adding this article to get answers to frequently asked questions about processing year-end payroll: Common year-end questions and answers.

 

Reach out to me in the comment section below if you have any additional questions, and I'll get back to you as soon as possible. I'm always here to help. Have a good one!

ddm2
Level 2

Payroll date of Jan. 1, 2021.

Since QB did not allow for 27 pay periods in 2020, there will be 27in 2021, first check date 1/1/2021. Your saying I have to do a manual check to have the check date 1/1/2021?

ShiellaGraceA
QuickBooks Team

Payroll date of Jan. 1, 2021.

Thanks for joining us here today, @ddm2.

 

I have some information about creating a payroll check. If you're trying to record wages for the year 2020, you'll want to create a manual paycheck dated December 31, 2020. This way, payroll wages and taxes will be included in your 2020 reporting.

 

However, if you're going to include these payroll wages for your 2021 reporting, you can create a paycheck with a paycheck date of January 1, 2021.

 

Want to learn more about the year-end payroll processing? Check out these articles below:

You can also visit this link here for additional payroll resources.

 

If you have other concerns with payroll, you're more than welcome to message me anytime. I'm here to listen and answer them for you. Take care.

ddm2
Level 2

Payroll date of Jan. 1, 2021.

I read that QB was automatically going to adjust the pay for 2020 for 27 pay periods, my payroll did not. That is why I cannot date my checks 12/31/2020.  I will have 27 in 2021 due to the first check dated 1/1/2021 how will QB adjust for that? I tried to create a check dated 1/1/2021 and it did not adjust for 27 pay periods.

ddm2
Level 2

Payroll date of Jan. 1, 2021.

Is quickbooks going to adjust salaries for 202, 27 pay periods?

Joesem M
QuickBooks Team

Payroll date of Jan. 1, 2021.

Thanks for getting back to us, @ddm2.

 

The system will base the calculation on the annual rate and payroll schedule of your employees. When you  pay an employee on a bi-weekly schedule, there are usually 26 payouts this year 2020 but sometimes there are 27, depending on where the days of the week land on the annual calendar.

 

Before preparing your last payroll of 2020 or the first payroll of 2021, verify the year in which the wages should be reported:

 

  • 2020 wages should have a 2020 check date;
  • 2021 wages should have a 2021 check date (1/1/2021 or later).

 

Also, for your payroll to be adjusted, I'd suggest contacting our Payroll Team. They can do payroll correction and know what adjustments need to be made to keep your numbers accurate.

 

Check out this link on how to reach them: Contact Intuit Online Payroll Support.

 

I'm also adding this link which contains the most frequently asked questions when processing year-end payroll: Common year-end questions and answers.

 

Should there be anything else you need, just let me know, and I'll get back to you. Take good care.

 

 

ddm2
Level 2

Payroll date of Jan. 1, 2021.

Is the statement below true?

 

The extra pay period affects salaried employees who are paid bi-weekly, @KJackson2020

 

Therefore, they will receive an extra paycheck. QuickBooks will automatically adjust its system by dividing the total salary among the 27 pay periods for next year, rather than 26. This will result to smaller amounts in each paycheck for salaried employees and will take effect at the beginning of the year 2020.

Joesem M
QuickBooks Team

Payroll date of Jan. 1, 2021.

Hello there, @ddm2.

 

Yes, the statement you've shared is true. If the paycheck date of your employee is December 31, this will include in the 2020 reporting.

 

Also, I'd still suggest contacting our Payroll Team. They can provide further details with the payment schedule and help you with the adjustments. Just click the link above on how to reach them.

 

In case you want print paychecks and paystubs in the future, you may refer to these articles:

 

 

Feel free to reply to this post if you have additional questions or any other concerns about QuickBooks. I’m always here to help.

 

 

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