FAQ: How Do I Pro-Rate Salary Correctly? (For New Hires, Terminations, or Pay Changes)

FAQ: How Do I Pro-Rate Salary Correctly? (For New Hires, Terminations, or Pay Changes)

When an employee doesn’t work a full pay period—such as when they’re hired mid-cycle, leave before the end of a pay period, or receive a pay rate change—you’ll need to calculate a pro-rated salary. This ensures fairness and compliance while avoiding over- or underpayments.

This FAQ will guide you through how to calculate pro-rated payroll using industry-standard methods, across weekly, bi-weekly, semi-monthly, and monthly pay cycles.