When a salaried employee has worked less hours than allotted in a pay period and doesn't have sick or vacation hours to cover the difference, you can pay the employee for hours worked instead of a regular salary amount.
In QuickBooks Desktop Payroll, you can edit the salary rate directly on a paycheck to pay a partial or prorated salary amount.
How to calculate a prorated salary amount
A common way to determine a salaried employee's hourly rate is to take their annual salary and divide it by 2080 (total hours worked in a standard year based on 40 hours per week). You can then multiply the hourly rate by the number of hours the employee worked in a the pay period.
Example: John's salary is $30,000. $30,000/2080 = $14.42 hourly rate. John only worked three business days (24 hours) for this pay period. The amount to enter in the Rate column on the paycheck is $14.42 x 24 = $346.08.
To pay a prorated salary amount
Step 1: Access the paycheck details by running your payroll.
- In your QuickBooks Desktop menu, select Employees > Payroll Center.
- Select Pay Employees tab.
- Under Create Paychecks table, select the Payroll Schedule for the desired pay period and select Start Scheduled Payroll.
- Ensure there are checkmarks on the employees you will pay for this period.
Step 2: Edit the salary rate directly in the Preview Paycheck window.
- Enter the correct salary rate for this pay period based upon hours worked.
- Press the Tab key on your keyboard to recalculate the taxes.
- Review the paycheck and make any other necessary adjustments.
- Select Save and Close to go back to the list of employee paychecks or Save and Next to preview the next paycheck.