Earnings & Deductions
      Back to home
      1. Help Center
      2. Payroll
      3. Earnings & Deductions

      Does GoCo Prorate Earnings?

      My employee got a raise! Does GoCo help me calculate the new earnings?

      Does GoCo Prorate Earnings Automatically?

      Yes! 🎉 GoCo will prorate earnings automatically under certain conditions. However, please note that this does not include backpay, which needs to be processed separately.

      When Does GoCo Prorate an Earning?

      If an employee has a change in earnings that occurs during a pay period (for example, if the pay period is from March 1 to March 15 and the change occurred on March 5), GoCo will split and prorate those earnings if the change was made at the right time.

      However, it's important to note that mid-pay period changes to wage type, wage rate, and job title are not supported on GoCo's Embedded Payroll if made before the payroll run is processed. See the best practices below to avoid any issues.

      Best Practices for Mid-Pay Period Changes

      Option 1: Process Payroll First

      • If you need to make a mid-pay period change (e.g., changing wage rate mid-period), process the payroll first and then make the update. You will need to handle any backpay manually in the next pay run.


      Option 2: Set the Effective Date at the Start of the Pay Period

      • To avoid any issues, set the change to take effect on the first day of the pay period. This ensures that GoCo can prorate properly.

      How to Check if an Earning is Prorated

      To verify if an earning is prorated, click on the employee within the payroll run. If the earnings are split, they are likely prorated. Still unsure? Check the employee’s employment record to confirm if a recent change occurred.

      When Will GoCo Not Prorate an Earning?

      GoCo does not automatically calculate backpay. If you enter a raise or change that takes effect in the middle of a past pay period, you will need to manually prorate and add it as backpay on the next paycheck.
      See this article for more information on how GoCo handles backpay.
      Moving forward, after the first payroll with the new rate, employees will show the updated standard earnings in each pay run (proration occurs once unless there are further changes).
      By following these steps, you can ensure smooth payroll processing without any surprises.

      Let us know if you have any other questions at help@goco.io. 💚