I'm posting this because:"GOOD NEWS!
January 1, 2021 is a pay day, however we're paying you on December 31, 2020, so that your pay deposits in the bank before the holiday.
Paying you on December 31 creates 27 pays in 2020, so we won't take any benefits deductions (annual biweekly benefit premiums are split over 26 pays). The additional pay is yours to keep - and perfect timing - a little extra to save in the new year, make a year-end donation or spend it on something new for you!
1. If this Fortune 500 company is doing this, I thought other people might want a bit of head's up in case they are trying to predict income for this year for various income threshold reasons (Roth conversions, income limits for deducting trad IRA or making "front door" Roth contributions, etc.). If you were expecting to be paid (biweekly) on Friday 1/1/2021 ... and if you have an income cliff of some sort you need to pay attention to ... Might want to double check with your HR exactly which year (2020 or 2021) is going to be the 27 pay period year for your company.
2. Anyone see anything else to beware of due to this, other than just accepting that the 27 pay period year is going to occur in 2020 (with all the associated W-2 and (probably) 401(k) ramifications) rather than in 2021? The over-enthusiastic tone of this (and its position hidden in the middle of the benefits enrollment book) has the suspicious hairs on the back of my neck slightly tingling. (Sorry HR. I'm not buying it that some new money suddenly appeared out of thin air. That kind of spin just makes me wonder if you are trying to redirect my attention away from something else you would rather I didn't notice.)
3. Just kind of curious - what are other people's employers doing? Moving the deposit to 12/31/2020 (creating 27 pay periods in 2020) or leaving it at 1/1/2021 (creating 27 pay periods in 2021)? (For all I know, this is actually some sort of banking issue where some bank(s) aren't enthusiastic about processing a bunch of payroll deposits on 1/1 and pushed back on the employer(s).)