Prorated Salaries

Most employers will likely need to adjust a salaried employee’s compensation in a process called proration. Prorated salaries can seem complex and difficult at first glance; however, understanding when an employer can prorate a salaried employee’s salary and how to do so can provide peace of mind and help an organization avoid potential compliance issues. This article provides a general overview of prorated salaries, including when to prorate a worker’s salary and how to calculate it.