Q. "Should we adjust our staff's biweekly pay since there is an extra pay period in 2026?"
Answer:
Yes, while you aren't required to change anything, most ministries should choose a strategy now to avoid a surprise "27th check" that could blow the budget or cause confusion with tax withholdings and benefits.
When a ministry pays biweekly (every two weeks), they typically budget for 26 paychecks a year. However, because 26 periods only cover 364 days, that extra day (or two in a leap year) eventually catches up to us. In 2026, if your first payday is January 2nd, your 27th payday will land on December 31st.
Your Two Main Options:
The "Fixed Annual Salary" Approach - Divide the employee's total annual salary by 27 instead of 26. This keeps your budget exactly where it was, but it means each individual paycheck will be slightly smaller for the year.
The "Extra Check" Approach - Keep the biweekly amount the same. This is essentially a small "bonus" for your staff, as they will receive 27 checks at their normal rate. This is great for morale but can be a heavy lift for a tight ministry budget.
From a stewardship perspective, the most important thing is communication. If you choose to adjust the pay amount to fit 27 periods, you must notify your staff in writing well in advance. You also need to double-check that any reduction doesn't push an exempt employee below the legal minimum salary threshold (currently $684/week federally, though many states are higher).
Don't forget the "hidden" details: benefit deductions (like health insurance) and retirement contributions are often set up for 26 periods. If you don't adjust your payroll settings, you might accidentally over-collect premiums or hit 401(k) limits too early.