Are You Losing A Week’s Pay Due To The Leap Year?
If you're a salaried employee, how much are you losing because of leap year? How does the extra time working get reflected in your paycheck?
A payroll nightmare is two leap years back to back.
- 2015 was an odd payroll year with 27 pay periods instead of 26, an occurrence that happens every 11 years.
- Salaried employees receive 26 bi-weekly paychecks that only cover 364 days, not 365.
- 2016 has 366 days.
What does that mean? Are you working two days for free? Or, depending on how you get paid, it appears to be a week.
A leap year, which usually happens every four years, has 52 weeks plus two days. The last one was in 2012. With 366 days this year how will you know you're compensated for the extra time?
The good news is, if you're an hourly worker, you're guaranteed an extra day or two, pay.