02/28/2024

Feb. 29 Looms

With it comes quirks and glitches

In contrast to the biannual debate between people who either love or despise the clock changes required by Daylight Saving Time, there aren't many strong opinions about the additional day added to leap years. Except maybe among company accountants, who every four years must calculate the various income and payment consequences of February having an extra 24 hours tacked on at the end.

Apart for individuals who were born on one (and maybe makers of calendars), the quadrennial appearance of Feb. 29 during leap years generally goes unnoticed. That is, unless you happen to be someone overseeing pay, benefits, amortization, interest payments or rent to collect for your business, as The Wall Street Journal reported Friday. In that case, each year evenly divisible by four -- apart from those ending in double zeros -- causes a spike in hand cramps as calculators do extra duty figuring fractions of weekly, monthly or even 1 percent quarterly increases of inflows and outflows that must be worked out and kept accurate, fair, and official.

Larger companies actually have to think hard about how an extra leap year day affects their operations and results. Most have to at least verbally address the additional working date when providing investors comparable first quarter income or same-store sales figures. But even smaller businesses have to join larger competitors to figure out correct compensation increases for employees asked to work the additional shift.

Please select this link to read the complete article from Inc.