Why is the first biweekly paycheck of the fiscal year always short? »

33) Why is the first biweekly paycheck of the fiscal year always short?

There are a number of factors that come into play at the beginning of each fiscal year that have to be explained.  In the end, employees will be paid for at least 20 working days in September, just as they generally are during at least 9 months of the year.

 Rules that cannot be changed and that MUST be followed:

  1. There must be at least two biweekly payroll cycles each calendar month (in order to half the insurance premiums and certain other payroll deductions).
  2. Biweekly payroll are considered “after the fact” payrolls – in that the pay period ends and the employee is paid the following week.
  3. Biweekly payroll periods start on a Thursday or the first day of the new fiscal year, and end on a Wednesday or the last day of the fiscal year

 

In order to get two biweekly pay dates in the new fiscal year from the funds for that year (and after we know what the new insurance premiums are to be), the biweekly payroll periods cannot both be for 10 working days.  One of them will be for a shorter period, and then we will start the normal 10 working day pay period.  We will have the final check from the previous fiscal year that will also have a September pay date that will help smooth out the cash flow for employees.

September 2011 is NOT the norm.  Biweekly paid employees actually received pay for 25 working days:

September 9      10 days (full check) with NO insurance deductions made

September 16      5 days (half check) with ½ of the September insurance premiums deducted

September 30     10 days (full check)   with ½ of the September insurance premiums deducted

Normally, the total being paid in September will be for the more usual 20 working days.  You will see that the last payment in August 2012 is for 7 days, the first payment in September is for 8 and the next payment is for 5 days, making a total of 20 working days.  Please review the Biweekly Payroll Schedule for FY2012.

September 2012

September 14      7 days (partial check) with NO insurance deductions made

September 21      8 days (partial check) with ½ of the September insurance premiums deducted

September 28       5 days (half check) with ½ of the September insurance premiums deducted

 

This page was last updated on 09/27/2011 10:47:28