Employers That Pay Biweekly May Have 27 Paydays in 2026. Are You Ready?
At a Glance 2026 may include an extra pay cycle for employers that pay biweekly. Now is the time for employers to examine their payroll practices and plan accordingly. Employers that pay their employees on a biweekly pay cycle often determine the amount of an employee’s biweekly salary by dividing their designated annual salary by 26, reasoning that there will be 26 pay cycles in a 52-week year. Makes sense, right? Not so fast! Once every 11 or 12 years, employers that pay biweekly will be faced with an unexpected payroll budget surprise – a 27th payday. For many employers, 2026 will be that year. How should an employer manage this unexpected payroll obligation? The Story of Acme, Inc. and Jane Doe To understand this issue fully, let us consider the example of Acme, Inc., which pays its employees on a biweekly basis. Acme’s designated workweek is Sunday through Saturday, and payday is the Friday following the end of each biweekly pay period. Acme pays Jane Doe an annual salary of $52,0...