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SMM's avatar
SMM
Experienced Cover User
12 days ago

setting up a part-time employee

Hi Everyone

We are setting up a permanent part-time employee (4 days per week) who is being paid a fixed salary for 4 days so their pay will not be set up as hourly but as a salary (pro-rata). For example $100K pro-rata is $80K for 4 days.

When setting up, in order to get the correct hourly rate appear on their payslip, do we simply enter the pro-rata salary (eg $80K) and then just reduce the hours in fortnightly pay to 60.80 hours (for 4 days) or is there a better way to do this?

 

Thanks S

 

2 Replies

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator
    12 days ago

    Hi smm,

    Good question — setting up salaried part-timers can definitely be a bit tricky at first.

     

    If your employee is working 4 days a week and being paid a pro-rata salary (e.g. $80K instead of $100K full-time), then yes — when setting them up, you'd enter $80K as their annual salary. That part’s spot on.

     

    Additionally, you should also adjust their standard hours per week. For example, if full-time is 38 hours/week and they’re working 4 days, you'd enter 30.4 hours/week (which is 80% of full-time)

    Here’s a bit more on that if you want to dive in: Changing an employee from full time, part time or casual

    Regards,
    Earl

  • SMM's avatar
    SMM
    Experienced Cover User
    8 days ago

     Thanks Earl, that's what I thought.

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