If you have an employee whose rate changes in the middle of a pay cycle, see below for how to handle this depending on if the employee is hourly or salary.
If an hourly employee has a pay rate increase mid-pay cycle, for example a Night Auditor's hourly rate increase from $14 to $15.50, continue to pay the hours worked x their original rate.
Hours worked: 38.10 x Hourly Rate of $14.00 = $533.40. This will calculate automatically when payroll is processed.
Then, calculate the hours worked at the higher rate. In this example, they were paid for 2 days (16 hours) at the new higher rate. Calculate the difference owed by taking the increase amount, in this example the rate increased by $1.50. The additional amount owed is 16 hours x the increase of $1.50 = $24.00.
In the payroll tab of Labor Mgmt, click the employee's name and enter this amount into the field called Differential Pay for the additional $24.00 owed.
Once payroll is finalized, typically the following day, go into the employee's profile in the User Management tab, and enter the new Hourly Rate so that all future payrolls will calculate using this rate.
If a salary employee has a pay rate increase mid-pay cycle, for example an Assistant General Manager's salary increases from $45,000 to $47,500, continue to pay the current pay cycle at the original salary.
Then, calculate the additional amount owed by taking the hourly rate difference of the increase x days worked at the higher rate. This employee is making $2,500 additional per year, which equals an additional $9.62 per day increase ($2,500 per year divided by 52 weeks divided by 5 days gives you the new daily increase amount). Since they're already being paid their original salary, we only need to calculate the increased amount. They worked 2 days at the new rate, so they're owed 2 days x the increase of $9.62 = $19.24.
In the payroll tab of Labor Mgmt, click the employee's name and enter this amount into the field called Differential Pay for the additional $19.24 owed.
Once payroll is finalized, typically the following day, go into the employee's profile in the User Management tab, and enter the new Salary Amount so that all future payrolls will calculate using this rate.
If an hourly employee changes to salary mid-pay cycle, they will need to continue to be paid as hourly for the current pay cycle and be paid as salary for the next pay cycle, for when they're salaried for the full pay cycle.
If they worked 30.10 hours at the hourly rate, then 2 days as a salaried manager, you will need to calculate the salary amount owed for the 2 days. The wages owed for the 30.10 hours x current hourly rate will automatically calculate with payroll.
The 2 days need to be manually calculated. If their salary will be $45,000, then their Daily Pay Rate will be $173.08 ($45,000 divided by 52 weeks divided by 5 days = $173.08).
In the payroll tab of Labor Mgmt, click the employee's name and enter this amount into the field called Differential Pay for the additional $346.16 owed ($173.08 x 2 days).
Once payroll is finalized, typically the following day, go into the employee's profile in the User Management tab, and change their Employee Type from Hourly to Salary and enter the new Salary Amount so that all future payrolls will calculate using this rate.