27 Payperiods Next Year?

[cpchri1]

Anyone notice in 2008 the Fed will have 27 (verse the normal 26) pay periods? :blink:
This is important because we will need to have the appropriate by-weekly or monthly TSP contribution (I guess the IRS will announce the 2008 tax deferred employee contribution cap by October 2007) or miss out on the agency contribution.

 

[nnuut]

Welcome to the MB cpchri1. Yes, I heard about that earlier this year but was unsucessful in trying to find out the effects on TSP. Good info, somebody knows.
Norman

 

[ChemEng]

Good info. I hadnt noticed that!

 

[weatherweenie]

Anyone notice in 2008 the Fed will have 27 (verse the normal 26) pay periods? :blink:
This is important because we will need to have the appropriate by-weekly or monthly TSP contribution (I guess the IRS will announce the 2008 tax deferred employee contribution cap by October 2007) or miss out on the agency contribution.

I haven't checked, and don't know where you can check, but several people that I work with have said that 2007 has 27 pay periods.

 

[oreo]

https://searchpub.nssc.nasa.gov/ser...otice_3.pdf?rhid=1000&did=29471&type=released

Date of Issue: December 2006
HR-NSSC-2007-0017​

27 Pay Periods in 2007​

The 2007 calendar year will have​

27 pay periods instead of the usual 26 pay periods. Please see
the following page for the 2007 Payroll Schedule. You should consider the following when
planning for 2007:​

•​

Thrift Savings Plan (TSP) Contributions​

TSP contributions will be deducted at the rate or dollar amount specified by the
employee for 27 pay periods in the tax year. The limit is $15,500 for 2007.​

•​

Thrift Savings Plan (TSP) Catch-up Contributions​

The TSP catch-up contribution annual limit established by the IRS is $5000.​

•​

Flexible Spending Accounts(FSAFEDS)​

Although there will be 27 pay periods in the year, the Flexible Spending Program
will divide the annual authorized deduction amount by 26 when processing
deduction data into FPPS. FSA elections will be deducted in the pay period
beginning December 10, 2006.​

•​

Combined Federal Campaign (CFC)​

Although there will be 27 pay periods in the year, the CFC will divide the annual
authorized deduction amount by 26 when processing deduction data into FPPS.
CFC contributions will be deducted in the pay period beginning January 7, 2007.​

•​

Taxes and Wages​

The employee’s Wage and Tax Statement, Form W-2, for calendar year 2007 will
include wages paid and taxes withheld for 27 pay periods.​

•​

Pay Limitation​

The statutory limit on pay which applies to most employees exempt from the Fair
Labor Standards Act (FLSA) (Title 5 USC 5307) and the annual premium pay
limits defined in Title 5 USC 5547 (b)(2) are also applicable in a year with 27 pay
periods.​

•​

Leave​

The 2007 leave year runs from pay period ending 01/20/07 through 01/05/08 (26
pay periods). There is no impact on leave accruals. Employees in the 6 hour
leave category will get their extra 4 hours in pay periods 27, the last full pay
period of the calendar year (12/09/07 through 12/22/07).​

Any questions concerning this notice, contact:​

NSSC Customer Contact Center​

1-877-NSSC123 or​

​

nssc-contactcenter@nasa.gov​

RELEASED - Printed documents may be obsolete; validate prior to use.​

 

[cpchri1]

I spoke with our HR and found out it depends on the agency. There is a OPM memo at:
http://www.opm.gov/oca/COMPMEMO/1997_1996/cpm97-3.asp which seems to indicate this. Although it is from 1997, it states, "For some agencies...[year] contains 27 pay days instead of the usual 26."

I thought all Federal Agencies had the same number of pay periods each year, but apparently this is not true. I work for Energy. We have 26 pay periods in 2007 and 27 in 2008. OREO, indicates NASA has 27 periods in 2007. The point is each individual needs to be aware of this because it can affect your TSP agency contribution and your maximum contribution. You could actually miss out on your agencies 1% at the tail end of the year if for some reason you contribute too much in the year and hit your maximum allowable contribution before the end of the year ($15,500 in 2007). One year I missed my agencies contribution by the last 2 pay periods of the year because I hit the max before the end of the year. Anyway this plays havac on your monthly take home pay, FICA, etc. Another thing to consider. The IRS is expected to increase the maximum tax deferred employee contribution cap for 2008 by October 2007 based on COLA....

 

[buda]

Can't find anything on the BOP and my HR thinks I'm crazy for asking this. The response was "have they made 2008 longer by 2 weeks?"

 

[oreo]

Very interesting discussion.

Although it appears to be a private industry website, I found a message board pertaining to a legal forum on workforce management discussing 26 vs 27 pay periods.

It seems to me even in private industry, this is not a well understood area of HR.

Even though it's not federal, I think its an interesting discussion. I hope it helps somewhat.

http://www.workforce.com/phpBB/viewtopic.php?topic=25877&forum=54&8

[FONT=arial,verdana]Author[/FONT][FONT=arial,verdana]26 vs 27 pay periods[/FONT]

Oreo

 

[nnuut]

Can't find anything on the BOP and my HR thinks I'm crazy for asking this. The response was "have they made 2008 longer by 2 weeks?"

Yep, and I hoped it would effect my HIGH THREE!!!$$$$$ $

 

[Sonic]

HR told me yesterday that their is going to be 27 pay periods next year.

 

[cpchri1]

HR told me yesterday that their is going to be 27 pay periods next year.

What agency are you with Sonic?