Accounting, Payroll & Pension Issues/FT exempt employee working PT for 1 PP
We have a full-time exempt employee who returned from maternity and could only work 2 days a week for one pay period then 30 hrs a week going forward until further notice. Her daily rate is more than $455. We are on a semi-monthly pay schedule and the employee would normally be paid their semi-monthly salary (86.67 hrs).
Our HR dept has set her up to be paid $2000 for the pay period which equates to 34.67 standard hours (16 * 52/24=34.67 hrs). The employee actually worked 5 days in the pay period.
What is the correct way to calculate her pay while working the reduced hours for both cases?
If an exempt employee is on intermittent unpaid leave under FMLA, her salary can be prorated based on the hours she works.
If she is not on FMLA intermittent you do not have to allow her to work at all until she can work a full schedule. If she is not on FMLA intermittent than you have to pay her full salary if she works any time during the week unless she is off 1 full day for personal reasons and this is not a personal reason it is a medical reason and does not count. If you have a vacation pay or sick pay plan you can use those hours to pay her the time she is off. If she has used all her time than you can dock the days not worked but it must be a bonefide time off plan.
Calculate the employee's annual salary by multiplying the amount she receives each pay period by the number of pay periods in the year, such as 52 weeks or 24 semimonthly payrolls. For example, $5,000 multiplied by 24 pay periods is an annual salary of $120,000.00.
86.67 per pay period x 24 pay periods is a total of 2080 hours.
Divide the 120,000 by 2080 to get the hourly rate of pay which would be 57.69 per hour.
Take the 59.67 X 8 to get a daily amount which would be 477.36.
The employee worked 5 days out of the pay period take 477.36 X 5 for a total of 2,386.80.