Here's how to calculate prorated earnings in an off-cycle run for someone who works only part of their normal pay period, e.g., a new hire or terminated employee.
Prorate Regular Earnings for Salaried Workers
To prorate gross regular earnings for a salaried employee:
- Divide the employee's annual salary by the number of pay periods in a year for their pay schedule to get their normal gross salary for each period. For example, an employee paid semi-monthly will be paid 24 times in a year.
- Then, figure out the number of working days in the period. For the semi-monthly example, this number is usually (but not always) 10.
- Divide their gross pay per period by the number of working days to get their gross daily rate.
- Multiply the daily rate by the number of days they actually worked. For terminations, make sure to include a full day for the date of termination.
For example, consider a salaried employee paid $50, 000 on a semi-monthly basis works only 8 of the 10 days in the second pay period of January 2016, from 1 /18/16 to 1 /27/16:
- The employee's per-period gross pay is ($50, 000 / 24) = $2083.33 per period.
- Their gross daily rate is ($2083.33 / 10) = $208.33.
- The employee worked 8 of 10 days in the period, so their gross prorated regular earnings are ($208.33 x 8) = 1666.64.
Prorating Regular Earnings for Hourly Worker
Calculating regular earnings for hourly workers in Zenefits Payroll is easy. Just enter the number of hours as into their paystub as Regular Earnings in the off-cycle run. Make sure to separate regular hours from overtime hours, and enter each as separate earnings, with exact hours for each.
Note: Zenefits Payroll automatically prorates only new hire or terminated worker's salaries in regularly scheduled pay runs.