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 below. You can also change the employee’s Job Title.
When making a compensation change, you must classify the 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 the option to change their benefits through this workflow, if you so choose. Click here to learn more about Benefits Classes.
Once you continue and confirm the switch, you’ll be led to the employee’s Job Information page, with a green banner and a card outlining the upcoming change.
You'll be able to look at any employee's compensation history from this Job Information tab in their profile. You can read more about viewing and editing historical information on our Work History page.
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.