Calendar Year 2020 has 27 paydays - What Does That Mean For You?
Calendar Year 2020 has 27 paydays
Calendar years typically have 26 bi-weekly paydays. January 2, 2020, was the first pay day of 2020. The State pays bi-weekly (every 2 weeks) and the final pay day of 2020 will be December 31, 2020.
What does an extra bi-weekly payday in a calendar year mean?
The additional payday could show gross wages more than an employee’s annual salary on their final pay stub and federal taxable wages on the W-2 could be greater in 2020 than 2019 even with no job or pay change. Because IRS regulations require that employers report wages in the calendar year when paid, not earned, wages reported in 2020 will likely be more than normal.
Please be aware of the impacts of a 27th payday in 2020 for your specific situation and plan accordingly.
The IRS recommends that employees complete a Paycheck Checkup for accurate tax withholding from their paychecks and to avoid tax filing surprises.
The newly revised IRS Form W-4 is available on the Y.E.S. website and can be updated by employees at any time if the employee feels a change is necessary.
For additional information, you can visit the General Accounting Office (GAO) site at https://gao.az.gov/
