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  • yalker
    started a topic Employer changes Pay date to effect YTD earnings

    Employer changes Pay date to effect YTD earnings

    Just curious what the laws are regarding this in Washington state.

    My employer normally pays on the 15th of every month for the prior month of work. However at the end of the year he pays on 12/31 to get the money off the books.

    This to me seemed fine, however this year he changed it to 1/15 of the new year.

    So basically what has happened, is I have 11 pay periods for 2010, and possibly 13 pay periods for 2011 (if he goes back to paying on 12/31 - doesn't seem right to me. Do I have any recourse?

    Thanks.

  • Pattymd
    replied
    It really doesn't make a difference as far as what goes on your W-2. Paid in 2010, reported in 2010. If he wants to pay on December 31 for the month of December, there is no law prohibiting him from doing so.

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  • yalker
    replied
    Our pay period is from the first of the month to the end of the month, with one normal pay date of the 15th.

    Up until this year we were always paid early for Dec pay period so they could avoid having the cash on the books for the given year. This year we were paid on Jan 15 a normal pay period. What this is means is that there are only 11 paychecks for my total 2010 earnings. And possibly 13 paychecks for 2011 if they go back to paying early.

    From your first post it looks like the law doesn't really care - I just have a jerk of a boss which was already obvious!

    Thanks for the speedy replies...great site you guys have here.

    Leave a comment:


  • Pattymd
    replied
    Agree. I was not clear on WHAT period of time was being paid on 12/31? Was it 12/16-12/31? Or something else?

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  • DAW
    replied
    There are sort of two very different issues here.
    - IRS does not care when (or if) the employee is (ever) paid. IRS cares very much that when the employee gets paid, that IRS gets paid. As Patty said, W2s are very much "cash basis", as are the deposit rules.
    - Then there are the state of WA "pay day" rules. Those are more likely what the OP is concerned about. My cheat sheet says that WA requires at least monthly payrolls (which is a long time as these goes) and that payment occur with 7 days of the end of the pay day. Now maybe WA DOL (or whatever WA calls their DOL) has all sort of rules and penalties on this sort of thing, but maybe not. The OP could try to call them to find out, but in my experience state DOL tends to not get too exercised about a one time payment difference like this.

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  • Pattymd
    replied
    Nope. Payroll is on a cash basis. Paid in 2010, reportable in 2010, regardless of when earned.

    Normal companies would just accrue for Dec 16th through 31st, but maybe he doesn't know how to do that.

    Leave a comment:

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