There are two fields in the payroll config that you will need to select a calculation method. This is for the Part Period Calculation Method and the Mid Period Pro Rata Method.

Part Period Calculation Method = used to calculate part period adjustments and back pay

Mid Period Pro Rata Method = used to pro-rata for two salaries in a period e.g. mid month pay rise

The Methods

Using the below examples:

1. An employee who was terminated as of the 15th August 2023 and salary of £24,000

2. An employee with a hire date of 15th August 2023 and salary of £24,000

3. An employee who moved from £24,000 to £30,000 on the 15th August 2023

In these examples the employee works 5 days a week 8 hours a day.
Hourly rate @ £24,000 = 11.53847
Period amount @ £24,000 = 2,000

Hourly rate @ £30,000 = 14.4230769
Period amount @ £30,000 = 2,500

Open

Working Hours

Calculation is working hours x employees hourly rate

1. 11 days worked = 88 hours
   88 x 11.53847 = £1,015.39
   
   

2. 13 days worked= 104 hours
   104 x 11.53847 = £1,200
   
   

3. 10 days/80 hours worked at £24,000
   13 days/104 hours worked at £30,000
   80 x 11.53847 = 923.08
   104 x 14.4230769 = 1,500
   Total = £2,423.08

Days in Period

Calculation is days available/total days in the period x period amount.

1. 15 days available
   15 / 31 = 0.48387
   2000 x 0.48387 = 967.74
   
   

2. 17 days available
   17 / 31 = 0.54839
   2000 x 0.54839 = 1096.78
   
   

3. 14 days at £24,000
   17 days at £30,000
   14 / 31 = 0.4516129
   17 / 31 = 0.54839
   0.4516129 x 2,000 = 903.2258
   0.54839 x 2,500 = 1,370.975
   1,370.975 + 903.2258 = £2,274.20

Period Amount

For this method the full period amount is taken less any unpaid working days.

1. 11 days worked = 88 hours
   23 working days in period = 184 hours
   184 - 88 = 96 unpaid hours
   96 x 11.53847 = 1107.69312
   2000 - 1107.69312 = £892.31
   
   

2. 13 days worked= 104 hours
   23 working days in period = 184 hours
   184 - 104 = 80 unpaid hours
   11.53847 x 80 = 923.0776
   2000 - 923.0776= £1076.92
   
   

3. 10 days/80 hours worked at £24,000
   13 days/104 hours worked at £30,000
   184 - 80 = 104 unpaid hours
   11.53847 x 104 = 1200

   2000 - 1200 = £800
   184 - 104 = 80 unpaid hours
   14.42308 x 80 = 1153.846
   2500 - 1153.8464 = £1346.15
   800 + 1346.15 = £2146.15

Paid Hours Ratio

Calculation is actual hours worked / total available working hours x period amount

1. 11 days worked = 88 hours
   23 working days in month = 184 hours
   88 / 184 = 0.47826
   24,000 / 12 = 2,000
   2000 x 0.47826 = £956.52
   
   

2. 13 days worked = 104 hours
   23 working days in month = 184 hours
   104 / 184 = 0.56522
   24,000 / 12 = 2,000
   2000 x 0.56522 = £1130.44
   
   

3. 10 days, 80 hours worked at £24,000
   13 days, 104 hours worked at £30,000
   23 working days in month = 184 hours
   80 / 184 = 0.43478
   104 / 184 = 0.56522
   24,000 / 12 = 2,000
   30,000 / 12 = 2,500
   2000 x 0.43478 = 869.56
   2,500 x 0.56522 = 1413.05
   869.56 + 1413.05 = £2,282.61