The following are some of the questions that we often encounter:
How do I process payroll for an incomplete month for new hires/resignees?
What is the salary proration calculation formula?
Not to worry! Talenox will help to prorate salaries for your employees automatically in Payroll as long as you have the following settings configured accurately:
1) Proration Calculation Settings
To process an incomplete month of payroll for your employee in Talenox, you'll first have to select your salary proration option - based on your company's policy:
26 Working Days
You will need to choose 1 of the following options under Profiles > Company Details > Payroll Details:
This is to let the system know how to prorate your employee’s payroll for the month.
You can take a look at this guide to help you understand how to ensure you set up the correct proration calculation:
2) Employee’s Job Details
When you ensure that the employee's job details are keyed in accurately, the system will then help to prorate salaries for your employees automatically according to the employee’s Job Start & Job End Dates in Talenox.
You can take a look at this guide to help you understand how to ensure that job details are updated accurately for employees:
How to Manually Calculate an Employee’s Prorated Salary
To calculate an employee's prorated salary, you must take into account these scenarios:
An employee who starts work after the 1st day of the month
An employee who resigns before the last day of the month
An employee who takes no pay leave of one or more days in the month
The salary proration calculation formula can be used in the following situations:
1) Working Days
[(Monthly gross rate of pay) / (Total number of working days in that month)] x Total number of days the employee actually worked in that month.
2) Calendar Days
[(Monthly gross rate of pay) / (Total number of calendar days in that month)] x Total number of remaining calendar days that the employee worked in that month.
3) 26 Working Days
[(Monthly gross rate of pay) / (26 working days)] x [26 - (Total number of days that should be deducted from days worked in the month)]
Hope this helps you with your salary proration calculations in Talenox. 🤩