How can I update an employee's compensation?
Admins can easily update a team member’s compensation in Justworks.
To change an employee's compensation, navigate to Manage > Employees from your dashboard. Then, click the desired employee’s name, and select ‘Change Compensation’ from the top right of the page.
Next, you’ll have to specify the employee's user type, pay basis, and pay rate, as shown here:
Afterwards, you must classify this employee as exempt or non-exempt. Since changes in pay basis or pay rate may change an employee’s exemption status, it’s important to classify your employee correctly. If you’re unsure and would like to read up on the law, you can take a look at our Exempt/Non-Exempt Resource Center.
Lastly, you’ll have to designate an effective date of the switch. Please keep in mind that effective dates that are in the middle of a pay period will be prorated accordingly. If the employee is currently enrolled in benefits through Justworks, you will have option to change their benefits through this workflow, if you so choose.
Once you continue and confirm the switch, you’ll see this green banner:
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.