Fiscal Year Memo #2026-01: Fiscal Year 2026 Proposed Fringe Benefit and Payroll Tax Rates
The Split Year Percentage will be 10% to Fiscal Year 2025 and 90% to Fiscal Year 2026 for most payroll charges. All reimbursements will be charged to Fiscal Year 2025, as will the other exceptions discussed in this memo.
Split Year refers to the period in which one pay period spans two fiscal years. This year, the Split Year pay period begins on June 29, 2025, and ends on July 12, 2025. LCM will process
HR/CMS payroll based on a 10–workday schedule (Monday – Friday). There is 1 workday in the Prior Fiscal Year 2025. There are 9 workdays (July 1 – July 4, 2024, and July 7 – July 11, 2025) in Fiscal Year 2026.