Leap Day Adds Extra Paycheck in 2008

Feb 29, 2008, 00:00 ET from American Payroll Association

    SAN ANTONIO, Feb. 29 /PRNewswire/ -- An extra day, an extra paycheck.
 The extra day or "leap" day added to February could mean many workers will
 get one more paycheck than usual in 2008.
     "In an average year, most days are repeated 52 times. In 2008, however,
 two days will repeat 53 times -- Tuesday and Wednesday," said Dan Maddux,
 executive director of the American Payroll Association. "Employees that are
 paid on either a Tuesday or Wednesday may get an extra paycheck in 2008."
     For salaried employees the leap day likely means a smaller paycheck all
 year. To compensate for the extra payday, companies will likely reduce
 salaried individual paychecks throughout the year to 'pay' for the extra
 paycheck. Most salaried individuals are promised an annual salary, not a
 specific amount each paycheck.
     Not all employees will receive an extra paycheck in 2008. Employees
 should talk to their payroll departments to see if their pay will be
 affected by the leap year.
     A recent study by the American Payroll Association shows that 67
 percent of employees live paycheck to paycheck. A reduction in an
 employee's paycheck amount caused by the leap year, although minor, might
 make it difficult to make ends meet. Lots of programs offered through
 payroll departments can help employees save and reduce their overall tax
 burden. Employees can visit the National Payroll Week Web site,
 http://www.nationalpayrollweek.com, for tips to stretch their paycheck.

SOURCE American Payroll Association