Financial Advisory Blog

Armanino’s Financial Advisory blog is your source for thought leadership around cloud ERP and accounting solutions and integrations. Supported by the Cloud Accounting Institute and numerous experts in cloud, finance, reporting, integration, compliance, and technology, Armanino’s Financial Advisory blog features must-read content on what’s happening in the finance industry, case studies, white papers, and much more.

July 6, 2020

If we choose to use the Alternative Payroll period, would the first payroll be included or excluded in the calculation? What about the last one?

Posted by Armanino Financial Advisory Team

The Alternative Payroll Period option was put in place to simplify the calculation of payroll costs for businesses who pay weekly or bi-weekly, so that the business could use whole payroll cycles rather than have to apportion stub cycles at the beginning and end of the Covered Period. For an eight-week Covered Period, this means either eight complete pay cycles (weekly payers) or 4 complete pay cycles (bi-weekly payers). For 24 weeks, this would be 24 or 12 complete pay cycles. There are no “paid but not incurred” or “incurred but not paid” issues under the Alternative Payroll Period option.

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