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How to Prorate Salary
Temat: Biznes
Do some Exercises: Słuchaj i zapisuj Tworzenie zdań Ukryte słowa
When you prorate salary, you determine how much an employee earned during a partial work period. It's a necessary step in determining the fair amount of pay for an employee that begins employment in the middle of a pay period, as well as for one who ends employment in the middle of a pay period. Additionally, if you're an employee and need your pay prorated, it's helpful to understand the process, so you can ensure that you're receiving the salary you have earned. Steps: 1. Note the employee's yearly salary. Even if you're hiring an employee for short-term work, knowing the yearly salary helps you more accurately prorate the employee's salary. As an example, assume that the employee's yearly salary is $50,000 (£30,328). 2. Divide the yearly salary by 12 to determine how much the employee earns in each monthly pay period, rounding it to dollars and cents. Using $50,000 (£30,328) as the yearly salary, this comes to a monthly salary of $4166.67 (£2527.33). Notice that even though the number of days an employee works may vary from month to month, most employers pay the same monthly salary each month. For example, though the average February contains only 20 work days, an employee usually makes the same in an average July, which contains 22 work days. 3. Examine the month for which you need to prorate the employee's salary to see how many work days there are in that month. If you are prorating an employee's salary for more than one month, prorate only one month at a time. 4. Determine the daily pay rate for the employee by dividing the monthly salary by the number of work days in the month you are prorating. If the employee's monthly salary is $4166.67 (£2527.33) and that month contained 20 work days, the employee's daily pay rate is $208.33 (£126.37). 5. Multiply the employee's daily pay rate by the number of days the employee worked in that month. If the employee worked 12 days at $208.33 (£126.37), the employee should receive $2499.96 (£1516.44) in prorated salary for that month. originated by: WRM, Whoze, BoldStepFixer Source: www.wikihow.com
