Tier Assignment Options: Paycheck Proration
When assigning an employee to a new contribution tier, you will need to indicate how you want deductions to be prorated. Below are the available options:
- Prorating based on a 30-Day Month: the employee will be charged for "30 - (effective date) + 1" (e.g. change happens on 3/6; employee would be charged for 25 days (30 - 6 + 1 day))
- Prorating based on True Month: the employee is charged for "(x number of days in that month) - (effective date) +1" (e.g. change happens on 2/6; employee would be charged for 23 days (28 - 6 + 1))
- Current Month: the employee is charged for the entire month in which the change is made
- Next Month: charges don't begin until the first of the following month in which the change is made
- Mid Month Threshold: if the change is made on or before the 15th, then charges are incurred for the whole month; if the change is made after the 15th, charges don't begin until the first of the following month