Proration Percentage Calculation Method
The proration factor is determined by looking up the percentage associated with the number of days that the worker is eligible in the period.
The calculation formula is the percentage assigned to the range into which the worker's number of eligible days falls for the period.
Setting Up Proration Percentage Calculation
To set up proration percentage calculation:
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Set up proration percentage rules on the Percentage Proration Rules page.
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For each prorate % ID, create separate proration rate schedules for workers who are active and those terminated at the end of the payout period.
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For each proration rate schedule, define ranges of eligible days and associate a percentage with each range.
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Set up prorate periods on the Prorate Periods page.
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Select Calendar Days as the proration frequency. This is a daily frequency, so the system creates a prorate period end date for each day in the payout period.
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Select a prorate % ID to associate proration rates schedules with the plan for the payout period.
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Example
Proration Rates schedule:
| Eligible Days | Proration Percentage |
|---|---|
|
10 |
35.00 |
|
21 |
65.00 |
|
31 |
100 |
Sample of proration factors:
| Employee's Eligible Days | Proration Factor |
|---|---|
|
5 |
35 percent |
|
17 |
65 percent |
|
22 |
100 percent |