Purpose
This article explains how to adjust employees' pay when they do not work full pay. This process is known as prorating and ensures the employee is paid accurately for the time worked. Typical situations where this adjustment is needed include:
- Starting a job partway through a pay period.
- Leaving a job before the pay period ends.
- Taking unpaid leave during the pay period.
- Working fewer days due to vacation or sick leave.
Only administrators or team administrators with the ability to update salaries can perform this adjustment.
Common Scenarios
Here are some real-life examples of when you might need to adjust pay for a partial pay period:
- New Hire: Employees begin their job on the 15th of the month, halfway through the pay period.
- Resignation: An employee resigns on the 10th of the month, before the pay period ends.
- Unpaid Leave: A salaried employee takes three unpaid vacation days during a biweekly pay period.
- Sick Leave: An employee misses part of the pay period due to illness but works the remaining days.
Steps to Adjust Pay for Partial Periods
- Log in to the Push Web App and go to the Employees tab.
- You can find the employee in the Active Employee List using the search box.
- Click the pencil icon next to the employee’s name under Edit.
- Scroll down and select Add/Update Salary.
- Click Prorate Salary.
- Enter the Proration Date, which is the date the adjustment begins (e.g., the employee’s start date, last working day, or the first day of unpaid leave).
- Input either:
- The total hours worked for the pay period, or
- The exact dollar amount the employee should be paid.
- Click Add Prorated Salary to finalize the adjustment.
Calculating A Proration
Alex, a manager, has an annual salary of $45,000 and typically works 2,080 hours per year. Their hourly rate is $45,000 ÷ 2,080 = $21.63 per hour. This pay period, Alex only worked 40 hours due to starting mid-cycle. To adjust their salary, multiply 40 hours × $21.63, resulting in $865.20 in prorated pay.
Additional Information
Pay adjustments only affect the specific pay period they are applied to and do not permanently change the employee’s regular salary. To ensure accuracy, it is recommended to use the proration start date as the exact day the adjustment begins, such as the first day of the impacted pay period.
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