When hiring an employee, the best practice is to have them start on the first day of the payroll cutoff rather than in the middle of the cutoff period. This way, there will be fewer salary adjustments or payroll disputes to contend with when generating their payroll.
If you hire an employee in the middle of the payroll cutoff period, make sure to set up the newly hired proration method to "Prorated/Daily multiply by days present".
This way, only the number of days present will be credited to the employee.
If you hire an employee on the first day of the payroll cutoff period, the proration method should be "Prorated/Salary less absent".
This way, the employee will be paid based on his/her full semi-monthly basic salary.
However, there may be instances where two or more employees have different hiring dates (some on the first day of the payroll cutoff period, while others in the middle of the payroll period). In this case, you need to choose one option: either "Prorated/Daily multiply by days present" or "Prorated/Salary less absent". You will then adjust the basic salary of the affected employees using a One-time adjustment under the Payroll Run tab.
If you hire an employee in the middle of the payroll cutoff period, make sure to set up the newly hired proration method to "Prorated/Daily multiply by days present".
This way, only the number of days present will be credited to the employee.
If you hire an employee on the first day of the payroll cutoff period, the proration method should be "Prorated/Salary less absent".
This way, the employee will be paid based on his/her full semi-monthly basic salary.
However, there may be instances where two or more employees have different hiring dates (some on the first day of the payroll cutoff period, while others in the middle of the payroll period). In this case, you need to choose one option: either "Prorated/Daily multiply by days present" or "Prorated/Salary less absent". You will then adjust the basic salary of the affected employees using a One-time adjustment under the Payroll Run tab.
Comments
0 comments
Article is closed for comments.