Key insights
- Your organization may see 27 bi‑weekly or 53 weekly payrolls in 2026, depending on how your calendar aligns. This timing shift can affect how salaried exempt employees are paid.
- There are several ways to handle the extra pay period — make no changes, adjust each paycheck, or correct mid‑year if needed.
- Some states require advance written notice if you adjust per‑pay‑period salary, so communication and compliance checks matter.
Align and strengthen your payroll and HR practices.
Will you have an extra payroll cycle in 2026?
Most years include 26 bi‑weekly or 52 weekly payrolls. However, due to calendar alignment, 2026 will create an extra pay period for many employers, resulting in 27 bi‑weekly or 53 weekly payrolls.
This unusual occurrence happens roughly every 11 years and can have important implications for both employers and salaried exempt employees.
Why 2026 creates an extra pay period
For employers whose first payroll of 2026 is paid on January 2, the final payroll of the year naturally falls on January 1, 2027. If the employer chooses to move that final pay date to December 31, 2026, an extra payroll cycle is created:
- Bi‑weekly payrolls: increase from 26 → 27
- Weekly payrolls: increase from 52 → 53
Impact on salaried exempt employees and the employer
If an employer simply runs the standard number of payrolls but adds an extra check without adjusting salary, the employee will receive more than their stated annual salary. This is considered to be an overpayment, not a change in base pay.
The extra pay can impact benefits such as Flexible Spending Accounts (FSA), Health Savings Accounts (HSA), and employees who contribute a percentage of their salary to retirement plans. The added pay cycle may affect annual contribution limits.
It is also important to consider budget impacts. If salaried pay is not adjusted, the extra pay can result in higher wage costs and budget overruns. If you are under grant- or funding-based budgets, exceeding approved funding levels may create financial challenges.
Employer options for addressing the extra pay period
1. Take no action
Allow employees to receive additional pay while keeping the annualized salary rate the same.
2. Adjust the per‑pay‑period salary
Recalculate recurring salaries based on 27 (bi-weekly) or 53 (weekly) payrolls so the annual salary remains accurate.
3. Mid‑year correction
If the earlier updates were missed, employers can align the outstanding salary owed with remaining payrolls.
Compliance and employee communication considerations
State wage notice laws may require advance written notice of per‑pay-period salary adjustments. Additionally, employers should evaluate pay periods to make sure pay doesn’t fall below Fair Labor Standards Act salary thresholds.
Employers are encouraged to proactively notify employees of changes, explain why adjustments are occurring, including effective dates, and how calculations were made.
How CLA can help review your people operations needs
This shift in payroll timing is a good moment to review the wider parts of your people operations. CLA’s talent solutions payroll and HR consultants can walk you through a full range of payroll and HR matters with clear guidance, practical insight, and hands‑on help across key workforce areas.
Our employment tax group can also provide guidance and review your strategy around new tax law opportunities. We can provide guidance on your current processes and help explore any adjustments needed to meet requirements.