Calculate Rate Changes

A payroll rate change refers to a change in the rate at which an employee is paid for their work. This change could involve an increase or decrease in the employee's hourly wage, salary, or other compensation rate.

Payroll rate changes can occur for various reasons, including:

Merit Increases: Employees may receive a pay raise based on their performance, experience, or tenure with the company.
Cost of Living Adjustments (COLAs): Pay rates may be adjusted to account for changes in the cost of living or inflation.
Promotions: Employees who are promoted to higher positions may receive a higher pay rate.
Market Adjustments: Employers may adjust pay rates to remain competitive with other employers in the industry or region.
Minimum Wage Changes: Employers must adjust pay rates to comply with changes in federal, state, or local minimum wage laws.
Contractual Changes: Pay rates may change based on changes to employment contracts, collective bargaining agreements, or other agreements between the employer and employees.

When a payroll rate change occurs, employers must update their payroll records and systems to reflect the new pay rate. This includes updating employee information, calculating new payroll amounts, and issuing new payroll checks or direct deposits at the revised rate. It's important for employers to communicate any payroll rate changes to affected employees in a clear and timely manner.

In this section:

How do I apply a rate change to a pay code?

How do I apply a rate change to an hourly rate?

How do I calculate a rate change?