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How do you address pay changes mid pay period for salaried employees?

edited Sep 5, 2020 12:33AM in Payroll and Global Payroll Interface (GPI) 2 comments

Summary

If an employee receives a mid pay period pay change and are salaried/semi-monthly, payroll calculation results in reduced pay

Content

When we implemented an integrated HR/Payroll solution, we thought we could lift the requirement that pay change effective dates for our salaried/semi-monthly employees be the first of a pay period (1st or 16th of the month).  We discovered that the system is not able to accommodate this scenario without shorting the employee.  Here's how:

  • Semi-monthly pay rates are calculated by taking the annual salary and dividing by 24 pay periods. 
    • Example:  100,000 annual rate / 24 = 4166.67 per pay period.
  • Semi-monthly hours on which that pay rate is based are calculated by taking hours worked in a calendar year and dividing by pay periods.
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