Does Your Business Have a 27th Payroll in 2026? Here’s What You Need to Know

By Apex HRO | Payroll Resources

Most years, businesses on a biweekly pay schedule run exactly 26 payrolls. But 2026 is different for some employers — and if you’re not prepared, it could catch you off guard.

Depending on when your first payroll of the year fell, your business may be facing a 27th biweekly payroll in 2026. Here’s what that means, why it happens, and what you should be doing about it right now.

What Is a 27th Pay Period?

A biweekly pay schedule means employees are paid every two weeks — 26 times per year under normal circumstances. However, because the calendar doesn’t divide perfectly into 14-day increments every year, occasionally a 27th pay period occurs.

This happens roughly every 11 years for any given payroll cycle, and 2026 is that year for employers whose biweekly pay schedule started with a January 2nd, 2026 pay date.

Does This Apply to Your Business?

Your business may be affected if both of the following are true:

• Your first pay date of 2026 fell on January 2nd, 2026
• Following your normal biweekly schedule, your last pay date of the year would fall on January 1st, 2027

Since January 1st, 2027 is a federal holiday (New Year’s Day), most employers will move that pay date to the business day before the holiday — December 31st, 2026. This creates a situation where you have paid employees 27 times within the 2026 calendar year.

Why Does This Matter?

A 27th pay period has real financial and administrative implications that need to be planned for in advance. Here’s what could be affected:

Payroll Budget

The most immediate impact is cost. If your employees are salaried, paying them 27 times instead of 26 means their annual salary is effectively spread across one additional paycheck. However, if your payroll system is set up to pay a fixed amount per paycheck rather than dividing the annual salary by 26, you could end up paying employees more than their contracted annual salary.

Employee Benefits Deductions

Many benefit deductions — such as health insurance premiums, retirement contributions, and flexible spending accounts — are calculated on a per-paycheck basis. A 27th payroll can affect:

• Health insurance premiums — some carriers only expect 26 deductions per year
• 401(k) contributions — employees could inadvertently exceed contribution limits if deductions aren’t adjusted
• FSA and HSA contributions — annual limits could be exceeded if not carefully managed

Employer Payroll Tax Liability

Some employer payroll tax obligations are tied to annual wage caps. A 27th payroll could push some employees over those thresholds earlier than expected, affecting your tax calculations.

Employee Communication

Employees may be surprised to see a paycheck that looks different — or to receive a check they weren’t expecting. Clear communication in advance can prevent confusion and unnecessary calls to HR or payroll.

What Should You Do Right Now?

If your business is affected by a 27th payroll in 2026, here are the steps you should take:

1. Confirm Whether You’re Affected

Review your 2026 payroll calendar. If your first pay date was January 2nd and your schedule runs every two weeks, map out all remaining pay dates for the year to confirm whether you land on a 27th payroll.

2. Review Your Payroll Setup

Work with your payroll provider to understand how your system handles salaried employees. Determine whether paychecks are calculated as annual salary ÷ 26 (fixed per-paycheck amount) or annual salary ÷ number of pay periods in the year. If it’s the former, you’ll need to decide how to handle the extra paycheck.

3. Audit Your Benefits Deductions

Contact your benefits carriers and review each deduction type to determine whether adjustments are needed for the 27th payroll. Pay particular attention to health insurance premium deductions, retirement plan contribution limits, and FSA/HSA annual election amounts.

4. Communicate with Employees Early

Give employees advance notice — ideally 60 days before the 27th payroll — so they can plan accordingly. Your communication should explain that a 27th pay period is occurring, how it affects their paycheck amount, any changes to benefit deductions, and the adjusted pay date of December 31st, 2026.

5. Update Your 2027 Payroll Calendar

Once you’ve navigated the 27th payroll, make sure your 2027 payroll calendar is set up correctly so you’re back to 26 pay periods going forward.

A Note on Hourly Employees

For hourly employees, a 27th pay period is generally straightforward — they simply get paid for the hours they worked during that pay period. The more complex decisions typically involve salaried exempt employees and how their compensation is handled.

Don’t Wait Until December

The biggest mistake employers make with a 27th pay period is not planning ahead. By the time December rolls around, you’re in the middle of year-end processing, open enrollment, and holiday scheduling. The time to address this is now — while you have plenty of runway to make thoughtful decisions and communicate clearly with your team.

How Apex HRO Can Help

Navigating a 27th payroll period requires careful coordination across payroll, benefits, and employee communications. At Apex HRO, we help small businesses handle exactly these kinds of complex payroll situations — without the overhead of a full in-house HR and payroll team.

Here’s what makes us different:

• No contracts — we don’t lock you into long-term agreements
• Pay per use — you only pay for what you actually need
• Expert guidance — PHR-certified HR consulting with 15+ years of experience
• Proactive support — we help you get ahead of issues before they become problems

If you’re not sure whether your business is affected by a 27th payroll in 2026 — or if you need help navigating the implications — we’re here to help.

Get Started Today → https://apexhro.com/get-started

Have a payroll question? Contact Apex HRO — no contracts, no commitments. Pay only for what you need.