Pay Periods Calendar 2021

Pay Periods Calendar 2021 – The pay period is the interval of time between an employee’s paychecks. The employee’s working time is tracked to determine how much they are paid. Common intervals for pay periods include weekly, bi-weekly, monthly, and semi-monthly.

With a weekly pay period, the employee receives 52 paychecks each year. This period is common for hourly employees. Weekly Payroll calendar are often paid one week in arrears, meaning that employees are paid for each pay period on the week after it is completed. Paying in arrears gives the employer’s payroll clerk enough time to calculate pay properly.

Pay Period Calendar 2021
GSA Pay Period (Payroll) Calendar 2021

With a biweekly pay period, an employee receives 26 paychecks per year. This period is sometimes used for both hourly and salaried employees.

With a monthly pay period, an employee receives 12 paychecks each year. This pay period is used exclusively for salaried employees.

With a semi-monthly pay period, the employee receives 24 paychecks per year. This is the most common period used for salaried employees.

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Pay Period Leap Years

In some years, the calendar calls for an extra pay period for certain employees. This is a “pay period leap year,” and it affects salaried employees on a bi-weekly pay period. If the calendar lines up properly, the year will include a 27th pay period. Employers who are looking out far in advance can adjust employees’ paychecks so that their salary is divided equally into 27 payments rather than 26. If you don’t plan ahead for a leap year, you have a few different options to deal with the extra pay period. Learn more in this article on pay period leap years.

As mentioned above, pay for salaried employees is typically distributed by dividing an annual salary into the appropriate number of payments for the year. Thus, on a monthly pay period, you would divide an employee’s annual salary by 12 to determine how much they should be paid in each period. How you time your pay periods does not matter so long as you ensure employees receive their full salary for the year.

2021 Pay Period Calendar
2021 Pay Period Calendar NFC USDA

Overtime

Overtime needs to be tracked for all employees who are eligible for it. You have the option of paying employees for overtime on the next pay period after the period in which they earn it to give you time to calculate it correctly.

One method for handling overtime is to shift your payment date by a few days. If your employees are on a weekly pay period that ends every Friday, for instance, you could set a policy of distributing paychecks on the following Wednesday. This gives you a time cushion to ensure you calculate overtime correctly.

Hourly Employees

An hourly employee is any employee whose pay is based on the number of hours they work.

Hourly employees do not have a contract stipulating their pay. It’s the employer’s responsibility to accurately track how many hours the employee works during a pay period. Employees often play a role in this process by submitting timesheets or using a time card system. Your timekeeping system must be accurate, and you need to verify that each employee’s hours are correct.

Employers have no obligation under federal law to assign hourly employees any given number of hours per week. Employees who do not work a full 40 hours per week can be considered part-time. Pay rates, benefits, and time off for part-time employees can all be different from those for full-time employees. Need W9 Forms ? check here : W9 Forms Printable

Federal Pay Period Calendar 2021
Federal Pay Period Calendar 2021

Exempt Employees

Virtually all salaried employees are considered “exempt.” This means you do not have to track their overtime hours or pay them for them. There are some important legal considerations regarding overtime exemption.

Two key requirements for employee pay are set down by federal law:

  1. All employees must receive at least the federal minimum wage.
  2. Employees that work more than 40 hours in a week must be paid for their overtime at a rate of at least 1.5 times their normal hourly pay.

Federal law allows employers to declare certain employees exempt from these requirements, even if they are paid hourly. Job descriptions that are commonly declared exempt include administrators, executives, professionals, and outside salespeople.