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How do you prorate semimonthly pay when someone leaves in the middle of a pay period?

One month your paycheck covers 9 workdays. The next month, it covers 12. You get paid the same each time. 

If you leave in the middle of your next pay period, how is your pay prorated?


Many payroll providers don’t automatically do the calculation. That means the math is up to you.


Pop Quiz:


Wilbur quits on July 25.

He’s paid a semimonthly salary. 


How many days are paid on Wilbur's final paycheck?


... Hurry. The payroll deadline is 2pm and the person who signs off on it needs to leave for a lunch meeting at 11:30.


...


Assuming Wilbur is paid current (the last day of the pay period = payday) on the 15th and last of the month, here’s the formula:


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Hourly rate = (Annual salary) ÷ (2080 working hours in a year) 


Working days between July 16 (the first day of the pay period) and July 25 (last day of work) = 8 days


Final pay = (8 days) x (8 hours per day) x (hourly rate)




Ready for another one? 


Wilbur's company has 20 days of front-loaded vacation. 


He has taken 5 days off so far this year.


He lives in California.


His PTO policy says that only the accrued portion of vacation is paid out at termination, but is silent on the accrual rate. 


Do you know how much PTO to add to his last check?


Hurry. The clock is ticking...


Payroll questions turning out to be more complicated than you think? We can help.



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