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.

1. Multiply their old hourly rate by the number of days in the pay period they worked at this rate.
2. Multiply their new hourly rate by the number of days in the pay period they worked at this rate.
3. Add together both rates to get their correct salary.
4. When you process payroll add in the difference between their old salary and their correct salary to account for the raise.

Example

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.