In the US, we run a semi-monthly payroll. This means that employees get paid twice a month - on the 15th of the month and the last working day of the month. When it comes to expense reimbursements and incentives, we have a payroll cutoff of the 11th of the month.
See also: What does the payroll cutoff mean?
Expense reimbursements and incentives have the same payroll cutoff, which is the 11th of the month, but we pay them out at different times:
- Expense reimbursements submitted and approved before the payroll cutoff will be paid out by the 15th of the month.
- Incentives submitted before the payroll cutoff will be paid out by the last working day of the month.
If the cutoff date is missed for expense reimbursements or incentives, they will be processed in the following month.