Salary Proration in Payroll

How does UZIO prorate salaries for new hires, terminations, and mid pay period salary revisions?

Below are the calculation steps:

• Determine EE’s Regular Hours Per Pay and Regular Wage Rate Per Hour from their earnings set up in their profile.
• Determine EE’s Working Days Per Pay Period
  • For Weekly EEs, the working days per pay period are 5
  • For Bi-Weekly, the working days per pay period are 10
  • For Monthly and Semi-Monthly EEs, the working days per pay period are total calendar days excluding Saturdays and Sundays.
• Determine EE’s Hours Per Working Day
  • Weekly = Hours Per Pay Period / 5
  • Bi-Weekly = Hours Per Pay Period / 10
  • Monthly = 173.33 / No. of Working Days per pay period
  • Semi-Monthly = 86.67 / No. of Working Days per pay period
• Determine EE’s actual Working Days in the pay period:
  • New Hires: Hire Date till Pay Period End Date, including the Hire Date and excluding Saturdays and Sundays
    • • For example, if the pay period is 09/01-09/30, and EE Hire Date is 09/12, actual working days are 15
  • Terminated: Pay Period Start Date till Termination Date, including the Termination Date and excluding Saturdays and Sundays
    • For example, if the pay period is 09/01-09/30, and EE Termination Date is 09/12, actual working days are 8
  • Working Days at Old Compensation: Pay Period Start Date till Change Effective Date, excluding Change Effective Date, Saturdays, and Sundays
    • For example, if the pay period is 09/01-09/30, and Change Effective Date is 09/12, working days are old compensation are 7
  • Working Days at New Compensation: Change Effective Date till Pay Period End Date, including the Change Effective Date and excluding Saturdays and Sundays
    • For example, if the pay period is 09/01-09/30, and Change Effective Date is 09/12, working days at new compensation are 15.
• Determine EE’s actual working hours 
  • New Hire/Terminated Actual Working Hours = Actual Working Days * Hours Per Day
  • Working Hours at Old Compensation = Working Days at old compensation * Hours Per Day
  • Working Hours at New Compensation = Working Days at old compensation * Hours Per Day
• Determine EE’s actual salary as 
  • New Hire/Terminate EE Salary = Actual Working Hours * Rate Per Hour
  • Mid Pay Period Revision Salary = (Working Hours at Old Compensation * Old Rate Per Hour) + (Working Hours at New Compensation * New Rate Per Hour)

At what rate are PTO and Overtime hours paid for employees whose salaries are revised effectively from the mid of pay period?

Paid Time Off and Holiday Hours are paid at the new rate, regardless of when the time off was taken or when the holiday lied within the pay period.

Overtime and Double Overtime Hours are paid at 1.5 times and 2 times of the prorated salary rate respectively.

Sample calculation for a mid-pay period salary change