Here are the steps on how to prorate salary:
- Go to “Employee Tab,” found at the top left of your screen.
- Find the Employee’s name.
- Click the pencil icon to edit the employee.
- Scroll down to “Add/Update Salary.”
- Select “Prorate Salary.”
- Set the Proration Date. This date can be any date within a pay period.
As an example, you can use the date of the first day employee is being paid. Or, a start date of a new pay period.
- Once complete, select “Add Prorated Salary”
- Enter in Total Hours and Total Amount.
*Please note: if you are adding a new rate for a salary employee, or changing an hourly employee to a salary employee, and the start date is in the middle of a pay period, you will need to prorate the salary for the period by the specified amount.
For example: If your pay period is the June 10th - June 23rd, and the employee's salary is $45 000 yearly. In this pay period, the employee works 5 days, or 40 hours. To calculate the proration:
$45 000/ 2080 hours worked yearly = $21.63 hourly
$21.63 x 40 hours worked in the pay period = $865.38 prorated salary for this period.
If you are changing an increasing an hourly employee's rate, and the start date is in the middle of a pay period, they will see a blended hourly rate on their next pay stub.
Payroll Run: Dec 25 - Jan 7
Dec 25 - Dec 31 $10 / hour (20 hrs worked) = $200
Jan 1 - Jan 7 $11 / hour (30 hrs worked) = $330
Total Hours: 50 hrs worked
Total Wage Earned: $530
Hourly wage shown in pay stub will be: $530 / 50 hrs = $10.60
- Once complete, select “Add Prorated Salary.”
***Please review the proration in the Payroll Summary BEFORE approving payroll***