Time Matters – The Impact of a Leap Year for Payroll

As we embrace another leap year it’s essential for employers and employees to understand the impact of a leap year on payroll.

Monthly Paid Employees

Monthly salaried employees won’t see any changes to their basic monthly salary as these are typically calculated on an annual figure, evenly distributed over 12 months, hence the additional day in February won’t result in any variation for this group.

Irregular Hours or Weekly Paid Employees

For those paid weekly or irregular working hours, these employees must be paid for hours worked on 29^th February just like any other day. For variable paid employees all hours worked are accounted for. If the employee is paid weekly, getting paid for February 29^th is straightforward, the employee’s pay aligns with the time worked, therefore there’s no noticeable change in the amount of pay received.

Clear Communication

During a leap year clear communication from employers is essential. If your pay structure is affected, you should explain any adjustments in advance to your employees.

If we manage your payroll for you, we take care of any leap year variations on your behalf. To find out more about our payroll services, please contact Julie Hunter on 0131 317 7377 or email Julie.hunter@jsca.co.uk