As always, the new year comes with a great deal of changes. With 2020 being a leap year, some of these changes may even be overlooked. A leap year typically occurs every four years, adding one extra day to the month of February. If you look at your calendar, you’ll probably notice that there are twenty-nine days in February, and that is why. While one day may not seem like a lot, it can effect many aspects of your company, specifically payroll.
The Potential Effect On Employers
As some of you may be aware, many employers are noticing 27 pay periods instead of 26. This means that if employers do nothing, they will be providing one additional paycheck, or raise, to employees who are exempt or salaried nonexempt employees. In short, employers will basically be giving out a raise.
Available Options For Employers
Employers have the option to allow employees to draw an “extra” paycheck, or divide each employee’s salary among the 27 pay periods. However, it is important to inform employees that this is happening, and make them aware that the “raise” is only in affect for 2020, as 2021 will go back to 26 pay periods. It is also important to note that skipping or significantly reducing employee pay for the last pay period is unacceptable, and simply not an option.
Therefore, it’s important to recognize and address these changes in order to plan accordingly. As always, your Innovative team will help you understand how these changes will affect your plans and strategy going forward. Please contact us with any questions you may have.
Feedback From Our Happy Customers
The Innovative team is well respected at AFS. My staff and I feel they are an extension of our HR team! Since implementation, they have always remained committed to assisting AFS with all of its healthcare needs; in fact, it doesn’t matter what time of day, they always respond in a timely manner.
Each year they come up with fresh material so our employee’s interest is always peaked. A few years ago, Innovative provided us with documentation to show that moving from a fully insured program to self-insured would be more cost effective for AFS, and it has been! Innovative has truly made our jobs easier so we can focus on other tasks.
As an HR professional, Innovative makes my job easier and benefits administration much less overwhelming than it would otherwise be.
They are truly a partner with me to make sure our team members have the best benefits and service around their benefits that we can offer. Innovative’s team is responsive, professional and resourceful. (They are at the forefront of knowledge in many areas, including ACA reporting and compliance, which can get highly complicated.)
As a client for the last 4 years, we love working with our Innovative Benefit Planning team because of their service model, scope , depth and quality of expertise in handling our benefits and renewals.
Their level of commitment just keeps getting better each year. They have more than met our expectations on renewal negotiations, response time, assistance with ongoing plans, open enrollment material, meetings, support, bill auditing, and wellness programs.
Since our partnership with Innovative Benefit Planning in 2017, it has been a seamless one. Innovative always provide options, suggestions and recommendations when it comes to our benefits renewal.
Innovative is always present even when open enrollment ends, their year round communication reminds me that I can always reach out for help at any time. Their professionalism is the utmost one can expect. My account representative Jenni is wonderful, courteous, knowledgeable and very helpful.
We have been dealing with Innovative Benefit Planning for many, many years. They have given us nothing but exceptional service.
We can pick up the phone or email them and they always resolve our questions and take care of our employees insurance issues in a very timely manner. They negotiate our insurance rates every year and have managed to reduce the increase every year. Every account manager we’ve had throughout the years have been great to work with.
I have been working with Innovative Benefit Planning for over six years. Previous to Innovative, I had used the same broker for about 25 years. I was used to doing everything myself during open enrollment with my previous broker.
When Innovative came on board, I was pleasantly surprised how “on top” of things they were. I never have to call them and bother them about getting rates to me for open enrollment, as they are in touch with our carriers on a regular basis, and they get me my information for open enrollment as soon as they receive it from the carriers.