Mid-Period Proration of Auto Pay Based on Average Daily Hours

You can configure an auto pay rule in Dayforce to prorate salary based on the average daily hours and the number of effective business days worked during the pay period.

This mid-period proration auto pay functionality is activated by selecting the Enable mid-proration based on average daily hours checkbox in the Auto Pay Rule, which you can configure as part of a payroll policy rule set, which you then assign to a pay group.

The rule calculation used to prorate salary for an employee is:

Days Worked in the Pay Period * Average Daily Hours * Base Rate.

This calculation is based on a five-day work week (Monday to Friday). Dayforce takes the average daily hours from the Average Daily Hours field value in the employee record.

For example, when an employee is hired in the middle of a biweekly pay period and only worked six business days, the prorated salary is calculated as follows:

• Average daily hours from employee record = 8
• Number of days worked in the pay period = 6
• Prorated hours = 8 * 6 = 48 hours
• Prorated salary = hourly base rate * 48 hours

Configure Mid-Period Proration of Auto Pay Based on Average Daily Hours

To set up mid-period proration by average daily hours for a payroll policy:

1. Go to Payroll Setup > Payroll Policies.
2. Expand an existing payroll policy, or create a payroll policy.
3. Select an existing ruleset you’re adding the rule to, or add a new ruleset.
4. With the ruleset selected, click the add icon (+) and select Rule.
5. Enter a name and, optionally, a description for the rule.
6. Enter a start date for the rule in the Effective From field. The application only applies active rules during their effective date range.
7. Verify that the Active checkbox is selected.
8. In the Type drop-down list, select Auto Pay Rule and, at a minimum, do the following:
   1. Select the Enable mid-proration based on average daily hours checkbox.
   2. Select the Enable mid-period proration for Retro Calculation checkbox to ensure the average daily hours proration rule is applied in the Sync Pay Changes wizard.
9. Click Save, and then click Refresh.