Many employers issue paychecks every other week, which typically results in 26 pay periods per year. This year, however, employers on a biweekly schedule may have 27 pay periods, depending on when you process payroll. The occasional adjustment occurs roughly every decade due to leap years and the mismatch between 365-day years and 14-day pay cycles. How will this impact your wage and hour strategies in 2026? If you haven’t already planned for this anomaly, be sure to coordinate now with your attorney and payroll administrator. Here’s what you need to know and your five-step action plan.
What’s Happening
Employers that started the year with a paycheck on Friday, January 2 may intend to pay the last check of the year on Thursday, December 31 (since Friday, January 1, 2027, is a holiday). By doing so, they will be issuing 27 – instead of the usual 26 – paychecks this year.
While this might not seem like a big deal at first glance, the change can cause payroll, budgeting, and compliance headaches, particularly for exempt employees who are paid on a salary basis.
Budget Implications
The biggest risk from failing to account for the extra pay period is overpaying salaried workers.