Every four years, there’s one extra day in February. The Smithsonian explains that leap year is not so simple as an extra day every four years, but I’m good with the non-technical leap year. How does this extra day affect your business?
Leap year and your small business
Employee compensation
The impact of a leap year on your payroll depends on whether employees are hourly or salaried workers.
- Hourly employees. They have an extra day of work for which they are paid. This year, February 29 falls on a Thursday, which is a workday for many employees.
- Salaried employees. They do not gain extra pay because of the additional day of work. Their pay is figured on a yearly basis and spread over the pay periods. The extra day does not change this arrangement.
All employees who are paid on the last day of the month must wait one additional day for their compensation.
Sales
A leap year is an opportunity to create special marketing events. Some suggestions:
- Leap Year Day contests
- Sales with 29% discount for the day
Yes, there’s one extra day of sales for the month. But the impact of one more day goes beyond a potential revenue pop. Think about what the extra day means for scheduling deliveries.
Be sure customer service can handle inquiries about promotions, deliveries, and other matters related to this one extra day in the month.
Other matters
What else can you do with one extra day? The additional work hours can be spent:
- Planning for your business
- Reviewing insurance coverage
- Networking with other business owners
- Taking a one-day course or training
- Listening to podcasts (catching up on those you missed but wanted to hear)
- Taking time off; relaxing
Final thought
Hiscox lists 29 tips for small businesses to maximize leap day. You have 4 years to plan for the next leap year.
