Pay period, pay date, and the lag in between
By Onoir Studio LimitedPublished Source links reviewed
A pay period is the stretch of time you are being paid for. The pay date is the day the money arrives. They are rarely the same day, and the gap between them is why your first paycheck at a new job feels late.
How the lag works
Payroll has to collect timesheets, apply overtime rules, calculate withholding and send the file to the bank. That takes days. So a biweekly period ending on a Sunday is typically paid the Friday of the following week, five days later.
A first paycheck may therefore cover a partial period or arrive after a payroll lag. If the timing or amount is unexpected, confirm the pay-period dates and payroll policy with the employer.
Your last paycheck
A final paycheck may be issued after employment ends. Timing depends on the employer's schedule and applicable state law, so confirm the expected date with payroll and check the relevant rule if it does not arrive.
Reading a payslip
- Pay period: the dates worked, usually printed at the top.
- Pay date: when the money lands.
- Gross: hours times rate, plus overtime and any premiums, before anything is taken out.
- Pre-tax deductions: items such as a 401(k), HSA or qualifying health premium may lower one or more taxable-wage bases, depending on the plan and payroll treatment.
- Taxes: federal income tax, Social Security, Medicare and any state or local income tax.
- Net: the number that hits your account.
- Year to date: the same figures accumulated since January, useful for checking withholding is on track.
Where this comes from
- IRS Publication 15 (Circular E), Employer's Tax Guide (opens in a new tab)
- 29 CFR 778.105, the workweek as the unit of overtime (opens in a new tab)
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