Prorating a payment for a new employee

NOTE: Many states have strict laws about how long you can wait to pay an employee for work that has already been performed. Please consult with your legal counsel to understand the potential consequences of delaying a payment.

When an employee starts in the middle of a pay period, their first paycheck should be prorated to pay them only for the days they worked. When administrators with the “manage employees” permission add a new employee to Justworks and include their start date, we’ll generate the suggested prorated amount for you based on the next scheduled pay cycle.

If the employee works Monday-Friday, and there aren’t any additional holidays or days off not on the holiday schedule (You > Time Off > Holiday Schedule), then you can click ‘invite (employee’s first name)’ and their first paycheck is all set.

If you have an employee that works an atypical workweek (e.g. a customer support representative who works Tuesday-Saturday), you can click ‘5 day workweek (M-F)’ or ‘Does (employee’s first name) have an atypical workweek (not M-F)?’ and select the days the employee normally works. The prorated paycheck amount will update as you make changes.

Also if you have holidays that aren’t on the Holiday Schedule, you can account for those by clicking ‘Are there any company holidays or additional days off between …?’ From there, you can enter in how many holidays/days off there were before the employee started, and the number of holidays/days off after the employee started.

There is also the option to enter the paycheck amount manually.

Confirm the amount and you're all set! All following pay-cycles will automatically be calculated based on the employee's annual salary (annual salary divided by 24).

Prorating a payment for an employee's final paycheck

Final payments to an employee are prorated via the same process. Once again, you'll select the days of the week that are unpaid (holidays, weekends, etc.) and either select the auto-generated pro-rated amount or manually enter your own amount.

You can change an automated salary payment

You can change an automated salary payment by following these steps:

  1. Click on the name of the employee whose payment you wish to delay. Then click View scheduled pay detail, check the override box, change the amount, and save.
  2. When you’re ready to pay the employee, schedule an off-cycle payment by clicking "Make a payment", choosing the employee, and creating a Pay Type > Salary Off-Cycle. The employee will be paid on the date you specify.

Disclaimer

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.

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