2026 may mean an extra biweekly pay period. Here’s how HR can prepare.

Summary

Some employers that run biweekly payroll will face a 27th pay day in 2026 — a quirk that occurs roughly every 11–12 years because 26 biweekly pay periods cover 364 days, leaving an extra day (or two in a leap year). HR teams should plan ahead: decide a pay approach, confirm compliance with FLSA and local laws, adjust budgets for the roughly 4% payroll impact, and communicate any changes and deduction rules to employees well in advance.

The article outlines three common payroll approaches (divide salary by days in year and pay by 14-day cycle; keep existing biweekly amount and budget for a 27th payout; or divide salary by 27), details legal and benefits-deduction caveats, and stresses the need for clear employee notice and budget adjustments.

Key Points

27th biweekly pay days happen about every 11–12 years because 26 periods cover 364 days, not 365 (or 366 in a leap year).
Three main employer options: prorate by calendar days and pay 14-day amounts; keep the regular biweekly amount and pay an extra check at year end; or divide annual salary by 27 (which lowers each check).
Division-by-27 or prorating can reduce each biweekly pay and risk falling below FLSA or state thresholds that preserve exempt salary status — check wage-and-hour rules before changing pay calculations.
Issuing a 27th check can increase annual payroll costs by roughly 4% per employee — budget and update accounting now.
Benefits deductions need handling (for example, whether to deduct contributions across 26 or 27 checks) to avoid overcharging or undercharging employees.
State laws vary on notice requirements for pay changes — providing at least one pay period’s notice is commonly sufficient, but check local rules (some states require 30 days).
If incentive or bonus plans already promise specific payments, employers must honour those commitments despite the extra pay period unless changes are made prospectively and lawfully.

Why should I read this?

Short and practical: if you run biweekly payroll, this is one of those predictable headaches you can avoid by acting now. The article gives the simple choices, the legal landmines (hello FLSA thresholds), and the communication and benefits fixes you need — so you won’t be caught off guard (or scrambling your budget) in 2026.

Author note

Punchy takeaway: this isn’t theoretical — it’s a routine calendar issue that has real cashflow and compliance impacts. If you’re responsible for payroll, compensation or HR ops, read the detail and pick a plan. Planning now saves messy retroactive fixes later.

Source

Source: https://www.hrdive.com/news/how-to-prepare-for-27th-biweekly-pay-day/807671/