27 payrolls with a biweekly payroll

Has anyone accommodated a 27 payroll year with updating the divisor to 27 on their current frequency table, rather than creating a new frequency table? We will have 27 payrolls in 2020 and are currently testing. We updated the BN04 changing the divisor to 27 and updated the BN104 on all benefits. It appears to calculate the proper benefit deduction amounts. Any advice, or warnings of what could go wrong, will be very much appreciated.

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Infor Lawson Human Resources Group - Discussion

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unknown

My advice is not to go this route and to stay with 26 cycles and to not change the flag on PR21 and maintain the same tax tables. With this approach you can offer the final pay of 2020 as a "free" cycle - similar to a manual check calculation when all regular deductions have already been taken. I find it's easier for employees when rates stay the same rather than going down one year and back up the next.

However - if you do want to proceed, ensure that you account for BN04 changes - with the BN104 update, BS06 if you do open or new hire enrollments, and PR21 if you want the taxes to account for 27 over 26 periods. Make sure you have a plan at the end of 2019 to put all in place (open enrollment BS06 would already need to be accounted for prior) and that you have an exit plan to undo everything at the end of 2020.

unknown

For what it's worth, the last time I was paid biweekly and a leap year caused an extra payroll cycle, I received a "free" check for the final period, as Dawn described.

chip-bennett

We do not adjust anything. The 27th pay is set to take no extra deductions. There is no fiscal budget impact.

deb-lopez

Thanks to all for your responses and advice!

Introduction to Infor Process Intelligence_Mar11_2023.pdf

unknown

Good luck Susan, have a great holiday!

unknown

We want to stay with 26 deductions and have the last pay be "free". I am keeping my Frequency Table at 26, but I'm not sure how to create my Pay Periods/Benefit Cycles.

I'm on v11 in the Cloud, so I don't know if that makes my question different than what you would do but, every year I have to do Admin > Setup > Payroll > Payment Schedules > select my Payment Schedule > Create Period Dates.

There are 3 fields:

- Period Thru Date = last pay period end date

- Total Benefit Cycles in Year

- Beginning Cycle

Usually I would enter 26 for the last two fields, but I'm hesitating to do that since this Payment Schedule will have 27 cycles but only 26 deductions. Do I enter 26 and then make sure the last cycle of the year is blank? Is there another/ a better way to do this?

john-miller

The "Use 53, 27 for Pay Periods" flag on PR21 is simply for taxes. If you say no, than the Tax is based on 26 pay periods, if you say yes it assumes the 27th pay period for calculating Taxes. That's it, there is no Benefits impact. I assume your Benefits are a "Monthly" amount and get taken out on Ded Cycle 1 and 2 and any month with a third, that third cycle is considered "Free" it's the same for a 27th Period in the year, you would use a deduction cycle other than 1 or 2.

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