Mid-Period Proration of Auto Pay by Annual 365 Days

You can configure an Auto Pay Rule in Dayforce to prorate salary based on the yearly average of 260 business days for a year.

This functionality is supported by the Annual 365 Days 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 a year has an average of 365 days, based on a workweek of Monday - Friday. The calculation used to prorate salary for an employee is:

<annual salary> / 365 * <number of days affected>

The following examples illustrate how this calculation is applied:

• New Start (New Hire): <annual salary> / 365 * <number of days affected>. In this case, the number of days affected is the number of days that the employee worked in the period from the start date to the end of the current pay period. Number of days worked in the period from start date to end of current pay period
• Leaver (Terminated): <annual salary> / 365 * <number of days affected>. In this case, the number of days affected is the number of days worked in the beginning of the pay period to the termination date.
• Salary Change in the Current Month: <old annual salary> - <new annual salary> / 365 * <number of days affected>. In this case, the number of days affected is the number of days worked at the old rate (including weekends) from the period start date to when the new salary is effective.
• Salary Change Backdated to a Previous Month: <new annual salary> - <old annual salary> / 365 * <number of days affected>. In this case, the number of days affected is the number of days worked at the new rate in the previous pay period.

To set up mid-period proration by annual 365 days for a payroll policy:

1. Go to Payroll Setup > Payroll Policies.
2. Expand an existing payroll policy, or create a payroll policy.
3. Click the add icon () and select Ruleset.
4. Enter a name and, optionally, a description for the ruleset.
5. Click the add icon () and select Rule.
6. Enter a name and, optionally, a description for the rule.
7. Enter a start date for the rule in the Effective From field. The application only applies active rules during their effective date range.
8. Verify that the Active checkbox is selected.
9. In the Type drop-down list, select Auto Pay Rule.
10. At a minimum, do the following:
    1. Select Annual 365 Days in the Mid-period proration drop-down list.
    2. Select the Enable mid-period proration for Retro Calculation checkbox.
    3. Select the Keep per pay period salary constant checkbox. This allows a salaried employee to receive their annual salary / pay frequency when no proration is required. For example, for an employee receiving £12,000 per year as a monthly employee, Dayforce will auto pay £1,000 salary.
11. Click Save, and then click Refresh.