New Hire and Prorate Payroll Schedules

Adding New Hires to your company has never been easier! See How do I hire a US Employee, US Contractor or International contractor? for more information on how to add new employees to your company.

For Hourly Employees

When you onboard an hourly employee, they can immediately start using their timesheets to ensure that they are paid based on the hours they have worked. Checks from payroll are deposited based on when Payroll is run in the following cadence:

Hours worked between the 25th of the previous month - 8th of the current month: 

On the 15th of the current month

Hours worked between the 9th of the current month - 24th of the current month: 

At the End of the Month

For Salaried Employees

Depending on when the new hire is added to your company, their first paycheck may look different from their regular paycheck. This is because they may start in the middle of a pay period and may need to receive a prorated amount that first paycheck.

The good news is that Every’s Payroll system can easily handle adding and prorating the amount so the transition for the employee is smooth!

Once you add a new employee you don’t have to manually add them to your regular pay schedule after they are initially input into the system. During the initial onboarding process for the New Hire, you are able to place them into an already existing pay schedule.

Once you have added them into the system and they complete their onboarding, they are automatically added to the upcoming Pay Schedule.

Checks from payroll are deposited based on when Payroll is run in the following cadence:

Days worked between 1 - 15th

On the 15th of the current month

Days worked between 16th - End of the Month

At the End of the Month

The system automatically calculates the prorated amount using the following formula:

For example, let’s assume you have a Pay Schedule set up to pay employees twice a month. The first paycheck they receive will be on the 15th and the second paycheck they receive will be at the end of the month.

Let’s say you have an employee join you with a start date for the 5th and who will be compensated $24,000 per year or $2000 per month. Once they clear onboarding on Every, they will automatically be entered into the Pay Schedule you have selected. And when Pay roll runs for the first Pay Period it will calculate their first paycheck the following way:

Normal Amount Based on Compensation and Pay Period: $1000 because the pay schedule pays the monthly amount out over 2 paychecks.

Daily Rate of Pay: $24,000 per year compensation / 260 days worked = $92.30 per day

Days not worked: If the cycle has 15 days and they start on the 5th, they didn’t work 4 days.

So their prorated amount, before any deductions are taken out, for the first Pay Schedule that they work at your company will be:

1000 -  (92.30 X 4) = $630.80 for their first paycheck

The system will automatically calculate and set this for their first paycheck. When they work the second pay schedule fully, they will receive their full $1000 before any other deductions are taken out.