The information posted on PayrollTalk is for informational purposes only and is not intended to substitute for obtaining accounting, payroll, tax, or financial advice from a professional accountant.

Employment status change - do you wait for the beginning of a new pay period?

When an individual changes employment status - for example, from independent contractor to non-exempt - do you try to make the change so that it falls on the first day of the pay period, eliminating the need for a paycheck with two employee types in a single period?

Comments

  • At least with your example "independent contractor to non-exempt", it is not an issue. Assuming those status bits are correct, the IC has not been getting a paycheck anyway...

    rrupertjadegurl
  • I agree that is not a good example as the IC-> ee would be considered a new hire.

    If you are talking about say a promotion with a pay change or non-exempt to exempt or vice versa, we do try to do those at the break in payroll periods.

    BeckyM
  • It is always easier to do these sorts of things at the end of the pay period. On the other hand, Very Senior Management in my experience does not give a flying f*** about making PR's job easier (or possible).

    Not the question, but things like IC>employee risk an argument that that the worker was legally ALWAYS an employee and just being mishandled. Non-exempt to Exempt is not a big deal (if the Exempt test passes), but the reverse is maybe not true. Possible argument that the employee legally was always non-exempt.

    BeckyMjadegurlrrupert
  • In a perfect world any type of pay change would be done according to pay period but that pretty much never happens...at least in my world.

  • Our HR does a pretty good job of making the changes on pay period start dates. Our issues are usually with expats returning to their home country.

Sign In or Register to comment.