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Pro rata calculations for starters and leavers on Payroll classic

Available for the following Payroll plans: Standard, Premium

There are various methods of calculating pro rata amounts due for employees. There is no firm rule,  as it is up to the discretion of the employer which calculation method is used. The feature allows users to select how the platform will pro rata salaries for starters and leavers and salary changes mid-way through a pay period.

Once you have set up the pro rata calculations, these settings will now be applied and used in the calculations for starters and leavers, as well as any employee who has a salary change mid-way through a pay period.

Getting started

Set up pro rata calculation
  1. Log into your Employment Hero Payroll classic platform.
  2. Click the   Business Settings menu.
  3. Click the Payroll Settings submenu.
  4. Click the Pay Schedules button.
  5. Click the Add button.
  6. Enter a name for this calculation / schedule.
  7. Select the Pro Rata Calculations option.
  8. Select the Use Custom Method for Pro Rata Calculations option. pro rata.jpg
  9. Select the pro rata calculation method.
  10. Complete the following fields.
    • Unit type:
      • Calendar Months.
      • Weeks per year.
      • Days per year.

      Helpful Hint

      The unit type Calendar Months is only available for monthly pay schedules; this option will not show for any other pay frequencies.

    • Unit. 

      Helpful Hint

      The field will change depending on the unit type selected, and you must enter the unit you require for the calculations.

      • Calendar Months: If you select the calendar month option, the unit will default to 12 months and you cannot change this value.
      • Weeks per year: The default unit will be weeks and you will need to enter the required number of weeks.
      • Day per year: The default unit will be days and you will need to enter the required number of days.
    • Qualifying Days:
      • Working Days (Mon – Fri).
      • Calendar Days.
    Screenshots of pay schedules page with the calculation inputs highlighted
  11. Enter a salary and click the Calculator button.

    Helpful Hint

    It will bring up a modal window which gives you an example of how the platform calculated the pro rata amount for the salary entered. Calculation example: £25,000 / 12 / 23 (working days in May) x 10 = £905.79. 

    Important

    We will not use the pro rata calculation for any employees who are set up with advanced hours or are set to use timesheets.

  12. Click the Save button
    Screenshot Pro rata calculations pop up

Daily activities

Apply the pro rate calculation to an employee
  1. Log into your Employment Hero Payroll classic platform.
  2. Click the Employee List menu.
  3. Click the employee who needs the pro rata calculation applied
  4. Click the Pay Run Defaults button
  5. Scroll to Pay Schedule section and select the name of the schedule you created for the corresponding calculation. 
  6. Click the Save button. employee calc.jpg

Deleting data

Delete a pro rate calculation
  1. Log into your Employment Hero Payroll classic platform.
  2. Click the   Business Settings menu.
  3. Click the Payroll Settings submenu.
  4. Click the Pay Schedules button.
  5. Scroll to the calculation/pay schedule you wish to delete. 
  6. Click the   button.

    Helpful Hint

    If the   is greyed out, the schedule ‌is disabled, and you will not be able to delete the entry. The reason for this is you have previously used it to pay an employee. We do not allow the deletion of the pay schedule so as to not ‌affect ongoing reporting by pay schedule.

  7. Click the Delete button to confirm deletion of the pay schedule.

    Helpful Hint

    You can restore a pay schedule by going to the Payroll Settings Restore Deleted Items page, and selecting the Pay schedule option from the drop-down. A list of all deleted pay schedules will appear and you can click the Restore button to restore the pay schedule.

    delete schedule.jpg

Explore related content

  • Unpaid employees reporting This feature allows you to create a report on the last date your non terminated employees received payment via a pay run.
  • Pay run variance reporting: This feature allows you to create a report comparing two pay runs within your organisation and see any variances in the deductions, leave taken and expenses.
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