[sixcardon]

Have an employee who is paid semi-monthly on salary. What formula do I use to calculate his daily rate as he did not work a full pay period?

[20anonymous08]

Divide his regular salary by the number of days worked in a typical pay period. Then once you have that factor, multiply it by the number of days the employee actually worked this pay period and there you will have it.

[morgaine300]

That may or may not work, depending on how technical you have to be.

Two points of view: if you divide by the number of days in the period, then you'll be dividing by the number of work days for that specific period in which the missing days fell. (e.g. July 1- 15 had 11 work days assuming either a paid holiday or that you're not in the U.S. and there wasn't one. :-))

But theoretically, since each month doesn't contain the same number of days, if you wanted to know a true daily pay, you'd want to multiply by 24 (24 semi-monthly periods in a year), and then divide by 261. Assuming a 5-day work week, is 261 working days. Which is also assuming every day is paid, i.e. paid holidays and such. And yes, some places would do it like this.

Depends on your point of view and how picky you need to be.

[LauriB]

Have an employee who is paid semi-monthly on salary. What formula do I use to calculate his daily rate as he did not work a full pay period?

Doesn't salary mean you get a specific amount each pay period whether you worked over your regular hours or less then??

[morgaine300]

Yeah, normally. But I could see one situation this wouldn't count: a new employee that starts mid-period.