Proration for resigned or terminated employees refers to the calculation of certain benefits or payments based on the portion of the time the employee has worked during a specific period. In order for Sprout to compute the prorated salary, please make sure that the employee is tagged as Resigned/Terminated. Here is the process of how to compute the prorated salary for Resigned/Terminated Employees:
1. Go to the “Payroll runs” Module, then click “Create New Payroll”
2. Fill out the required fields as to final pay processing and determine all income that will prorate
3. Select resigned/terminated employee/s that is not included in the final pay processing
- Click the checkbox beside the name
- Click “<” to exclude the resigned/terminated employee employee
- Click Next
4. Click “Import attendance” - The system will generate the attendance of the employee for the set cut-off period. Then click save and process.
To validate resigned/prorated computation:
a. Determine the number of working days within the period
- Payroll coverage is February 1 - 28. The resignation date is 2/2/2023. The working days during the period are 2 days.
b. Determine the Daily Rate for Basic, De Minimis, and Work Days Per Year
- Monthly Basic is 50,000
- Work Days Per Year is 240
- Basic Daily Rate = (50,000.00 * 12) / 240 = 2,500 x 2 days = 5,000
- Monthly De Minimis is 3,500
- De Minimis Daily Rate = (3,500 * 12) / 240 = 175 x 2 days = 350
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