Every so often, the calendar creates a small but important payroll quirk: an extra pay period. In 2026, some businesses that run weekly or bi-weekly payrolls may experience an additional payroll cycle. While it may sound minor, this can have meaningful impacts on budgeting, salaries, and employee deductions.
Here’s what employers should know.
How an Extra Payroll Happens
Most payroll schedules follow a predictable pattern:
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Weekly payroll: 52 pay periods per year
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Bi-weekly payroll: 26 pay periods per year
However, because a year has 365 days (366 in leap years), the calendar doesn’t line up perfectly every year. Occasionally, the way pay dates fall on the calendar creates an extra payroll cycle.
In 2026, some employers will experience:
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53 weekly payrolls, or
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27 bi-weekly payrolls
This typically happens when the first payday of the year falls early enough that the regular pay schedule produces one more check before the end of December.
Why This Matters for Salaried Employees
The biggest impact is usually seen with salaried employees paid on a bi-weekly schedule.
Many employers calculate a salaried employee’s paycheck by dividing their annual salary by 26 pay periods. But if the year contains 27 pay periods, and the per-paycheck amount isn’t adjusted, the employee will receive more than their intended annual salary.
For example:
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Annual salary: $52,000
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Normal bi-weekly pay: $2,000 ($52,000 ÷ 26)
If an employer pays 27 checks of $2,000, the employee would receive $54,000 for the year instead of their intended salary.
How Employers Typically Handle It
Businesses generally choose one of three approaches:
1. Adjust the Paycheck Amount
Employers divide the annual salary by 27 instead of 26, resulting in slightly smaller paychecks but keeping the total annual salary correct.
2. Pay the Extra Check
Some employers simply keep the normal paycheck amount and pay the extra check. This increases total payroll costs for the year.
3. Adjust Later in the Year
Employers may start the year normally and adjust remaining paychecks later to ensure the total salary equals the intended annual amount.
Other Payroll Items That May Be Affected
An extra payroll cycle can also impact certain deductions and benefits that occur each pay period, such as:
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401(k) contributions
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Health savings account (HSA) contributions
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Flexible spending account (FSA) deductions
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Employer benefit contributions
If deductions are taken each pay period, the extra payroll may cause employees to reach annual limits earlier or slightly change their overall contribution amounts.
Plan Ahead and Communicate
If an employer decides to adjust paycheck amounts to account for an extra pay period, employees may notice slightly smaller paychecks during the year. Clear communication can help avoid confusion.
It’s also important for employers to review their payroll calendar ahead of time so they can plan for any impact on payroll budgets, benefits deductions, and employee expectations.
Final Thoughts
An extra payroll period doesn’t happen often, but when it does, it’s something employers should plan for in advance. By reviewing payroll schedules early and deciding how to handle the additional pay cycle, businesses can avoid surprises and keep payroll running smoothly throughout the year.
This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.
