When hiring an employee, the best practice is to get them to start on the first day of the payroll cutoff instead of the middle cutoff period. In this way, there will be less salary adjustments or payroll dispute to contend with when you generate their payroll.
If you would hire an employee in the middle of the cutoff payroll period, make sure to set up the newly hired proration method into " Prorated/Daily multiply by days Present"
This way, only the number of days present will be credited to the employees.
If you hire an employee on the first day of 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.
However, there's an instance wherein two or more employees have different hiring date (some at the first day of payroll cutoff period, while some 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 now adjust the basic of some employees affected in this kind of scenario using One-time adjustment under the Payroll run tab
If you would hire an employee in the middle of the cutoff payroll period, make sure to set up the newly hired proration method into " Prorated/Daily multiply by days Present"
This way, only the number of days present will be credited to the employees.
If you hire an employee on the first day of 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.
However, there's an instance wherein two or more employees have different hiring date (some at the first day of payroll cutoff period, while some 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 now adjust the basic of some employees affected in this kind of scenario using One-time adjustment under the Payroll run tab
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