My question involves labor and employment law for the state of: California
My question regards pay periods. Our first payroll in 2020 falls on January 3rd, for the period through December 29th 2019. We pay biweekly. The last pay period in 2020 should fall on January 1, 2021, but because it's New Year's, it gets pushed back to December 31. This results in 27 pay periods in 2020. The January 17th 2020 payroll will incorporate new pay rates for everyone (all salaried). If we divide the salaries by 26 and pay 26 times through December 31st, everyone will effectively be overpaid for the year, and the company's payroll expense will be inflated.
So how does one handle something like this? My thought was to divide the new rates by 27, 26 of which will be paid in 2020 (plus the Jan 3rd 2020 payroll), with the 27th payment made on January 14th, 2021, after which we would use new 2021 pay rates for the rest of the year.
Maybe I'm over-complicating this. It seems that if our January 3rd, 2020 rate was the same as the rest of the year, the simple fix would be to divide by 27, but that's not the case. Can someone help me out on this one?
Thanks very much.