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      Bi-Weekly Payroll | 26 Pay Periods

      Adjusting Jirav System Salaries for 26 Pay Periods for Bi-Weekly Payroll

       

      The Jirav system salaries will always calculate monthly wages as 1/12th of annual salaries. 

      This article explains how to adjust the system salaries to account for 26 pay periods for bi-weekly payroll. 

      It is important to first consider whether the variance between 24 and 26 pay periods materially impacts the organization's financial statements and key performance indicators. If deemed necessary, here are several approaches to review to adjust the system salaries for 26 pay periods:

      Option 1: Manual Adjustment

      This involves manually adjusting the calculated salaries by month in OpEx to reflect the 26 pay periods annually. This is likely the most straightforward option, but can become tedious to maintain.

      Option 2: Custom Table Adjustment - Annualize by Year Method

      1. Create a Custom Table: Add four lines to a custom table:

        • Salary per Pay Period: Divide Salary from Staffing This Year by 26.
        • Pay Periods: Input the number of pay periods by month.
        • Adjusted Salary: Multiply Salary per Pay Period by the number of pay periods.
        • Adjustment to System Salaries: Subtract Adjusted Salary from Salary from Staffing.

      2. Link to OpEx Account: Connect the Adjustment to System Salaries line back to the OpEx account where System Salaries is linked. Note that this method loses the impact of new hires and terms by month.

      Option 3: Custom Table Adjustment - Annualize by Month Method

      1. Custom Table Setup: Add five lines to a custom table:

        • Annualized Salaries: Multiply Salary from Staffing This Month by 12.
        • Salary per Pay Period: Divide Annualized Salaries by 26.
        • Pay Periods: Input the number of pay periods by month.
        • Adjusted Salary: Multiply Salary per Pay Period by the number of pay periods.
        • Adjustment to System Salaries: Subtract Adjusted Salary from Salary from Staffing.

      2. Link to OpEx Account: Link the Adjustment to System Salaries line back to the OpEx account where System Salaries is connected. This method introduces variability by month from new hires and terms, but maintains a slight variance to system salaries over the total year.

      Consideration A

      If salaries in your account are by department, simply repeat the chosen method for each department. 

      Each option has its pros and cons, so your choice should be guided by factors such as accuracy, efficiency, and the specific needs of your organization. Evaluate these options carefully to determine the best fit for your requirements.

      Consideration B

      If employees should be allocated across departments, first make adjustments to the "Salary per pay period" line by using Custom Drivers to subtract out or add a % of Salaries of allocated Roles.