perplexedbypensions
Feb 24 2007, 12:33 PM
I wasn't sure where to place this question, but am hoping there are some payroll experts out there.
Company has 2 payrolls per month, on the 15th and the 30th.
Employee begins works on the 12th of the month, so is only working for 4 days in the first payroll cycle.
Employee earns $1000 each payroll period.
Company calculates compensation as working 4 out of 15 days so pays 4/15 of $1,000 or $266.70.
Employee feels they worked 4 out of 10 days so pay should be 4/10 if $1,000 or $400.
Which of these scenarios sounds correct?
Thank you very much!
Bird
Feb 25 2007, 01:31 PM
I'm not a "payroll expert" but...
Following the company's logic, everyone should be docked for weekends, and another person with the same rate of pay and employed for the entire year would not be paid for 104 out of 365 days and would receive only roughly 2/3 of their annual rate of pay. Wow.
I'm not sure about the absolutely correct way to calc it (breaking it down to a fractional daily, weekly, monthly or semi-monthly rate) but the employee is a lot closer than the company.
perplexedbypensions
Feb 25 2007, 08:05 PM
Whether or not this is legal (does anyone know) I'm glad someone else thinks it sounds funny. I'll have to follow up and see what happens with the next 15 day payroll, and if they will only be paid 11/15 of the next compensation period.
If anyone knows if this is legal, or if a company can just pay like this, could you please still let me know?
Thank you.
Bird
Feb 26 2007, 07:43 AM
I'm sure they're going to pay a full 1/2 month's comp from now on; I was just trying to demonstrate the silliness of the way they did the calculation.
WDIK
Feb 26 2007, 12:47 PM
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