Salary Proration

You set the date – Powerpay does the rest!

When a salaried employee starts, returns, or leaves in the middle of a pay period, Powerpay calculates the right amount based on Monday–Friday workdays. First and last day worked are included, so you don’t have to do the math.

Benefits

  • Automatic accuracy: Calculates partial-period pay for New Hires, re-activations, and terminations.

  • Works across runs: Available on regular and extra payrolls.

  • You stay in control: Review the prorated amount, turn it off, or enter your own amount.

Prorating ensures that employees are compensated fairly for the time actually worked, based on the payroll schedule in effect at the time of hire. Automating this process eliminates manual calculations, reduces errors, and ensures compliance with standard payroll practices.

Quick FAQs

  • When does it apply? New hires, reactivations, and terminations that fall mid-period.

  • How is it calculated? We calculate a daily rate from the annual salary, then multiply by the payable workdays, inclusive of the first/last day worked - simple and accurate!

  • Can I change the pro-rated amount? Yes, keep it, turn it off, or enter your own amount.

How Salary Proration Works

Powerpay uses the Pay Period Start and End Dates to determine the total number of working days in a pay period. It then uses the employee’s First Day Worked (for new hires), ROE First Day Worked (for rehires) or Last Day Worked (for terminated employees) to calculate the number of payable days.

Powerpay uses the employee’s annual salary or salary per pay period to determine a daily salary. Powerpay then multiplies that value by the number of days worked to calculate the employee’s prorated first pay.

Powerpay calculates proration based on a standard work week (Monday to Friday) and excludes weekends and statutory holidays from the calculation.

Examples:

  1. If the pay period includes 10 working days, and the employee’s First Day Worked is the 6th day of the period, Powerpay will calculate and pay 5 days of salary for that pay period.

  2. The pay period is Oct 4-17, and for a New Hire, and the employee’s First Day Worked is October 8th. The Salary Override calculated amount would include 8 working days.

Prerequisites

  • This functionality is available for Powerpay People payrolls. To convert to Powerpay People, contact your Customer Support Team.

  • This feature is enabled for your payroll. Contact your Customer Support Team to enable this feature.

  • This feature is available for Regular and Extra Runs.

Tasks

Note: This feature is available for Regular and Extra runs for New Hires.

When new salaried employees are hired mid-pay period using the New Hire Wizard or Onboarding Wizard, Powerpay automatically calculates a prorated salary amount for their first pay.

You can choose to clear the Prorate Salary Payment checkbox or modify the prorated amount calculated as needed.

  1. Open the People List.

  2. Click the button.

  3. On the employment information page, if the selected Pay Type includes the word ‘Salary’, and the employee’s First Day Worked falls within an open or soon to be opened pay period, the Prorate First Salary Payment checkbox displays.

    • To adjust the prorated amount, enter the desired amount in the Salary Override field.

    • To deactivate Salary Proration, clear the Prorate First Salary Payment checkbox.

    Note: If the Salary or First Day Worked is changed on theCompensation tab.Closed From the People menu, select People List > Compensation., you must manually update the Salary Override amount.

    Note: Saved salary proration calculations are not recalculated if a new Pay Period Ending Date is entered and saved on the Calendar Edit page. Calendar Edit page.Closed From the Company menu, select Calendar > Calendar Edit.

  4. Click Next to continue through the remaining employee setup pages.

  5. On the New Hire Summary page, review the salary override amount calculated or entered.

  6. Click Save.

    Powerpay populates the salary override amount on the Employee Timesheet when the pay period is opened.

Note: If the employee is not activated in the current pay period, the salary override amount is ignored.

Note: If a pay period is closed, all employee changes, including the saved salary override, must be deleted from the pay period before closing it.

  1. Click the Pay Period menu and click the Enter button for the pay period you want to work with.

  2. Reactivate the employee on the Status Change / ROE page.Closed From the Payroll menu, select ROE / Employee Status Change > Status Change / ROE.

  3. Select the employee from the People List.

  4. Enter the Status Change Options.

    Resulting Status: Active

    ROE Form: Do not produce

    Current Pay: Process

  5. Click Next.

  6. Enter the ROE First Day Worked.

    If the date falls within the current pay period, the Prorate Salary Payment checkbox defaults to selected and the salary override is automatically calculated based on the Salary Per Pay field.

    • To adjust the prorated amount, enter the desired amount in the Salary Override field.

    • To deactivate Salary Proration, clear the Prorate First Salary Payment checkbox.

  7. Click Save.

Powerpay populates the salary override amount on the Employee Timesheet when the pay period is opened.

Note: If a pay period is closed, all employee changes, including the saved salary override, must be deleted from the pay period before closing it.

Note: If Reverse Status is selected on the Status Change / ROE page.Closed From the Payroll menu, select ROE / Employee Status Change > Status Change / ROE. after the employee is terminated and before the payroll is submitted, the salary override calculated by proration is removed from the Timesheet.

  1. Click the Pay Period menu and click the Enter button for the pay period you want to work with.

  2. Terminate the employee on the Status Change / ROE page.Closed From the Payroll menu, select ROE / Employee Status Change > Status Change / ROE. page.

  3. Select the employee from the People List.

  4. Enter the Status Change Options and set the Current Pay to Process.

  5. Click Next.

  6. Enter the Last Day Worked.

    If the date falls within the current pay period, the Prorate Salary Payment checkbox defaults to selected and the salary override is automatically calculated based on the Salary Per Pay field.

    • To adjust the prorated amount, enter the desired amount in the Salary Override field.

    • To deactivate Salary Proration, clear the Prorate First Salary Payment checkbox.

  7. Click Save.

Powerpay populates the salary override amount on the Employee Timesheet when the pay period is opened.

Note: If a pay period is closed, all employee changes, including the saved salary override, must be deleted from the pay period before closing it.

Note: If Reverse Status is selected on the Status Change / ROE page.Closed From the Payroll menu, select ROE / Employee Status Change > Status Change / ROE. after the employee is terminated and before the payroll is submitted, the salary override calculated by proration is removed from the Timesheet.