July 23, 2020
We pay all our employees weekly, but occasionally we have corrections or other off-cycle payments between pay days. Should these checks be counted with the prior week, the following week or should they be entered into the model on a separate date entirely?
Posted by Armanino Financial Advisory Team
Such non-standard payments to employees should be added to the salary they were paid in the period when the payments should have been made if they are corrections, or in the next pay period if they are payments such as bonuses, commissions or severance. Do not enter “off-cycle” pay periods in the model — stay consistent so the proper calculations can be made.