You can configure an Auto Pay Rule in Dayforce to prorate salary based on the yearly average of 6 business days a week. This option calculates prorated salary for a work week of six days from Monday to Saturday (6 * 52 = 312).
This functionality is supported by the Business Days - 6 Days a Week option in the Mid-period proration drop-down list in the Auto Pay Rule of a selected payroll policy in Payroll Setup > Payroll Policies.
The calculation is based on the logic that, if a work week has six days (Monday - Saturday), a year has an average of 312 business days. The calculation used to prorate salary for an employee is
Effective Days/No of working days in the month * Monthly Salary
For example, when an employee is hired in the middle of a monthly pay period and only works 18 business days out of 26 working days, the rule auto-pays the employee a prorated amount for the 18 days worked. The prorated salary will be calculated as follows:
Effective Days worked/No of 6 business working days in the month * monthly salary (18/26 * monthly salary)
To set up mid-period proration by business days - 6 days a week for a payroll policy:
- Go to Payroll Setup > Payroll Policies.
- Expand an existing payroll policy, or create a payroll policy.
- Click the add icon (
) and select Ruleset. - Enter a name and, optionally, a description for the ruleset.
- Click the add icon () and select Rule.
- Enter a name and, optionally, a description for the rule.
- Enter a start date for the rule in the Effective From field. The application only applies active rules during their effective date range.
- Verify that the Active checkbox is selected.
- In the Type drop-down list, select Auto Pay Rule.
- At a minimum, do the following:
- Select Business Days - 6 Days a Week in the Mid-period proration drop-down list.
- Select the Enable mid-period proration for Retro Calculation checkbox.
- Select the Keep per pay period salary constant checkbox.
- Click Save, and then click Refresh.