Prorate an Employee's Salary

Can I prorate a new hire or terminated employee's salary?

Purpose: This guide will show you how to prorate an employee's salary right within your payroll run.

Please be aware that the proration tool only works within standard payrolls.

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Please be aware that this tool does not prorate wages for employees who take unpaid time off during the pay period or whose compensation changes in the middle of the pay period. It also does not account for Holidays in an employee's work schedule.

Salary Proration

If an employee is hired or terminated within the pay period, you will see a New Hire or Terminated banner by their name. If the employee is paid a salary, you will also see a banner at the top of the page letting you know that their wages need to be prorated.

You can also access the Prorate Wages modal for the individual employee in the following places: 

  1. On the Edit page, when hovering on the employee row and clicking the “Prorated Wages” icon next to the amount of wages.
  2. On the employee's Payment Details page in the Wages section,

After clicking Prorate Wages, you can click the edit icon next to an employee or select Review Individually to adjust wages if necessary.

If employees work a regular schedule of Monday-Friday for 8 hours per day (40-hour work week), the system will suggest a prorated amount for you. Clicking the edit icon or Review Individually will open the Edit Proration modal. From here, you can also choose to calculate the wages yourself by entering hours and wages (both required), or you can choose not to prorate and pay the employee as if they worked the entire pay period. 

Choosing to prorate wages, whether you use the suggested amount or calculate wages yourself, will also adjust the employee's regular hours. 

Once the wages are to your satisfaction for each employee, click Review to return to the previous page. Finally, click Submit Wages to return to your payroll run.

Why isn't the system suggesting a prorated amount?

If the employees do not work a typical 40-hour work week, our system will isolate the employees but ask you to calculate their prorated wages.

After clicking the Prorate Wages button, a modal will open to show you which employees need attention and you'll be able to enter their hours worked and appropriate wages.