Mid-Pay Period Salary Change Calculations

We're excited to announce a new update to BambooHR Payroll that simplifies how you manage salary changes for your employees!

Previously, if a salaried employee had a pay change in the middle of a pay period, you had to manually calculate the difference and adjust their wages. This was often time-consuming and frustrating.

With this release, we've automated the process of calculating wages for salaried employees when a pay change occurs mid-pay period!

What's New?

• Automated Wage Proration: The system will now automatically calculate the correct wages for salaried employees who have a pay rate change during a pay period.
• Clearer Wage Adjustments: You'll see a "Prorate Wages" banner when employees need salary adjustments.
• Detailed Breakdowns: For employees with a mid-pay period pay change, the "Prorated Wages" section will now show a breakdown of salary wages for both the previous and new pay rates (e.g., "Jun 1-6: $1000, Jun 7-15: $1,569.23").
• "Pay Change" Indicator: A "Pay Change" flag will appear next to the employee's name, similar to "New Hire" or "Terminated".
• Enhanced Review Process: The Edit Proration screen offers options to use the suggested wage, the original rate, the new rate, or to calculate it yourself. It also displays the daily rates and days worked for suggested wages.
• Handling Multiple Events: If an employee has multiple proration events (e.g., New Hire + Pay Change, Terminated + Pay Change), the system will show applicable indicators and a Multiple Factors subtext.

Who is included in this update?

This automation applies to salaried employees who:

• Are classified as "Salary" at the start of the pay period
• Work a standard 40-hour week
• Experience a pay rate change mid-pay period

The automation will work when:

• The employee's pay type is "Salary" when the pay period begins
• Their hours per week is set to 40
• Their salary rate changes during the pay period
• The change dates are consecutive (no gaps)
• The change is a regular update or new entry (not a correction)

We’re excited for this new feature to streamline your payroll process and save you valuable time!