New Starter

[Tracy Edmunds]

I hope someone can help me, I have never studied payroll, taught myself as I go along.
I have never been able to find written rules on how to work out a part month for a new starter.
I find that most people belive it should be worked the same as sick pay and holiday pay i.e Salary divided by 260 multiplied by number of days worked.
I have always worked it as 1/12th of the annual salary divided by the number of working days in that month multipy by number of days worked as the number of working days are limited depending on the month, as each of the following months will be paid at 1/12th of annual salary any further breakdown should be worked round this figure.
Is there a set rule, and if so where is it written?
Thanks

[GILL]

Don't think there are difinative written rules just an expectation that you will apply the same process to all staff.

The problem with calculating 1/12th annual and then dividing by number of working days in the current month is that you are technically saying that people are being paid a different daily amount dependant on which month you are paying which is not correct, monthly salaried pay is just an 'average' of the total due in each year. This is why people calulate the actual daily rate (div by number of actual working days in the year) and then multiply by actual days worked.

[Tracy Edmunds]

I understand what you are saying about the daily rate, but the monthly rate is changed by using the annual salary. Also the days you work are paid differently than the days you don't work.
I was paid £225 less in that month, for two days not worked, but then only £61.54 per day for the 18 days I did work. If all the days were worked at that rate for that month I would be unable to earn the salary I am supposed to be on, If all the other months were worked accordingly by the end of the year it could be made up, but they are only paid at 1/12th. So the whole year would never add up to my salary
16000/260x258=15876.92 This is I agree what should be earned for two days not worked.
The annual way of working out a part month =1107.69 + (1333.33x11)=15774.32.
The monthly way of working the part month=1200+(1333.33x11)=15866.63
The annual way gives a difference of £102, the monthly way gives a difference of 10.29 surely the monthly way is more accurate. £100 is a lot to be down in one month.
The annual way could be used accurately if the daily rate is subtracted from the monthly salay not just paid for the days worked.i.e 61.54 per day for two days not worked deducted from monthly wage!
Is this what you mean take the daily rate off, this would be completely accurate.

[JACKIEJ]

If you look at my post requesting help with leavers the same would apply re employees handbook see reply no 2

Jackie

[Tracy Edmunds]

Thank you for your reply, I will look in the book, if I ever get to see one! But even if it goes on a daily rate should you take the daily rate off for days missed or pay the daily rate for days worked?
There is a difference of over £100! Surely accuracy must come into it somwhere? All I get from the person that did my payroll is that's just the way it is, you will make it up when you leave???
:?