Give an hourly employee a raise during a pay period
If your employee receives a raise in the middle of a pay period you will need to manually calculate the extra amount to add to the payroll to accommodate the increase.
- Multiply their old hourly rate by the number of days in the pay period they worked at this rate.
- Multiply their new hourly rate by the number of days in the pay period they worked at this rate.
- Add together both rates to get their correct salary.
- When you process payroll add in the difference between their old salary and their correct salary to account for the raise.
My employee Aly makes $15 an hour. She is going to get paid October 14 for the period of October 1-7. She gets a big promotion and gets a raise to $20 an hour effective October 5.
First, I multiply $15 by the 32 hours she worked at that rate to get $480.
Second, I multiply $20 by the 24 hours she worked at that rate to get $480.
I add the two rates together to get her total salary of $960.
When I process payroll I see that her old payment is $840 so I calculate the difference between her old and new total salary, which is $120. I enter $120 as Other Earnings.