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Q: Payroll Creep ( Answered,   1 Comment )
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 Subject: Payroll Creep Category: Business and Money > Finance Asked by: onetobehold-ga List Price: \$5.00 Posted: 20 May 2005 16:03 PDT Expires: 19 Jun 2005 16:03 PDT Question ID: 523888
 ```How/why does the payroll creep (27th payroll) occur and how will it effect my paycheck. I work in a school district usually on 26 pays and I'm looking for an easy to uderstand explaination.```
 ```Howdy onetobehold-ga, This Boise State University PDF file has a great explanation of the "27th Payroll" anomaly. http://hrs.boisestate.edu/payroll/FAQ_27th_Payroll.pdf "What is the 27th Payroll? The 27th payroll is an anomaly to the bi-weekly pay schedule caused by calendar creep that cycles every eleven years. The last 27th Payroll occurred in Fiscal Year 1995. The next one is FY 2006. A 'normal' bi-weekly pay year consists of 26 pay periods. However, due to the difference in timing between two-week pay periods, a 365 day calendar and the additional days for leap year, every eleventh pay year contains a 27th pay period. Will my annual salary be reduced because of the 27th Payroll? No. Your annual salary will not be reduced because of the 27th payroll. However, for the employees that are contracted to work a specific number of days but less than the full year and have their pay prorated over the full hear, their bi-weekly paychecks will be slightly reduced, as described below. How will the 27th Payroll affect me? If you are on a 12 month work schedule, you will work an additional two weeks and will be fully compensated for that work. If you work less than 12 months but have your annual salary paid over 12 months, you will see a slight drop in your bi-weekly paychecks but only because your annual salary will be divided over 27 pay periods rather than the standard 26. Again, everyone will be paid their full annual salary. Is the 27th Payroll a ?bonus? for 12 month employees that is not available for those who work less than 12 months? No. Twelve month employees will work 27 two-week pay periods in FY06. They will get paid for time worked. This is not a windfall of any sort." Your school district might be handling it a bit differently from how Boise State deals with it, but their approach seems to be typical as long as funding is in place for it. The timing might also be different for you as well as it should occur 11 years after the last "27th Payroll" happened in your school district. From my reading of your situation, when it does happen, you might get 27 paychecks instead of 26, but each one will be for around 4% less than usual, leaving your total annual salary the same. If you need any clarification, please feel free to ask. Search strategy: Google search on: "27th Payroll" ://www.google.com/search?q=%2227th+Payroll%22 Looking Forward, denco-ga - Google Answers Researcher``` Request for Answer Clarification by onetobehold-ga on 21 May 2005 06:47 PDT ```I had found that info also, but when I was searching I also came across another anwer concerng exactly what happens in our calendar system to cause this "creep". I printed it and closed out but didn't get the text, only the pics, and now I can't find it again. It went into detail such as nonleap years have X amount of days and then a leap year adds X and after X years you are left with X-something to htat effect, but I didn't read it closely so I don't know. I was hoping someone would uncover that piece again. thanks for trying``` Clarification of Answer by denco-ga on 21 May 2005 13:10 PDT ```Howdy onetobehold-ga, The reason/formula is pretty straight forward. If we take the number of days in a standard year (365) and divide it by 14 (the number of days in 2 weeks) we get (rounded) the result of 26.071429 two week periods in a regular year. If we do the same for a leap year at 366 days, we get the result of 26.142857 two week periods. In any 11 year period/cycle there will (almost) always be 3 leap years and 8 "non" leap years. Odd years such as 1900 and 2100 are not leap years in most of the world, but as we are not within those cases, let us go on with those numbers. So, if we take the remainders and multiply them out, we get 8 x .071429 for a subtotal of .571432 and 3 x .142857 is .428571, so then in turn the totals of those remainders are 1.000003, which is really close to 1. As these are fractions of 14 days (2 weeks), after 11 years, we end up with a remainder of 1 x 14 days, or our 27th Payroll! Looking Forward, denco-ga - Google Answers Researcher```
 ```The way it was explained to me (by an accountant) is that if a company pays on the 15th and the 30th, there is no creep. 12 months X 2 payrolls per month = 24 paychecks, less accounting, same money. It's the same as the 1st and the 16th, but accountants (and owners) like the former. You can feel the creep coming when you get those "3rd" paychecks in one calendar month that happen when you get paid every 14 days... ~~Cynthia```