Starting a new job can raise a lot of questions, especially around your first paycheck. If you start partway through a pay period, you may be wondering if you’ll receive a full paycheck right away or if it will be prorated based on the days you actually worked. Here’s a quick look at what to expect for that first paycheck when starting a job mid-month.
How payroll periods work
Most companies have set payroll schedules that determine how often employees get paid. For example, some common payroll periods include:
- Weekly – Employees get paid every week
- Bi-weekly (every other week) – Employees get paid every other week
- Semi-monthly – Employees get paid twice a month, such as on the 15th and last day of the month
- Monthly – Employees get paid once a month
Within that payroll schedule, companies define a fixed pay period – a set block of time in which hours worked determine pay for that period. For a bi-weekly schedule, the pay period may run for two weeks from Sunday to Saturday. Under a semi-monthly schedule, the pay period may be the 1st through 15th of the month and the 16th through last day of the month.
Knowing your company’s payroll schedule and pay periods will help determine when you’ll receive your first paycheck.
Will my first paycheck be prorated?
If you start a job mid-pay period, your first paycheck will likely be prorated based on your start date and the number of days worked during that period. Let’s look at an example:
- The company pays employees bi-weekly with a Sunday to Saturday pay period
- You start on a Wednesday
- The pay period runs from Sunday through Saturday for a total of 14 days
- You worked 3 days out of the 14 day pay period
In this case, your paycheck would be prorated for the 3 days worked. So if your normal bi-weekly pay is $2000, your first prorated check would be around $428, covering 3 out of 14 days.
Here is a breakdown of how that prorated amount is calculated:
- Bi-weekly pay: $2000
- Days in pay period: 14 days
- Days worked in pay period: 3 days
- Daily pay rate: $2000/14 = $142.86 per day
- Pay for days worked: $142.86 x 3 days = $428.57
As you can see, the first check is prorated to pay you for just the 3 days worked in that initial partial pay period.
When will I receive my first prorated check?
You’ll receive that first prorated paycheck at the same time as other employees within the standard pay schedule. So if payroll is processed every other Friday, you would receive your first check on the closest scheduled payroll date based on your start date.
For example, if you start on Wednesday, June 15th and payroll is processed every other Friday, your first prorated check would be issued on Friday, June 24th covering the period from June 12th to June 25th. This allows your pay to get onto the regular payroll schedule right away instead of having to wait until the next full pay period.
Factors that impact prorated pay
As we saw in the example above, several factors come into play that can impact your prorated first check:
- Start date – The day you start within the pay period determines the number of days worked to prorate pay.
- Pay frequency – How often you are paid (weekly, bi-weekly, semi-monthly, etc.) impacts calculations.
- Pay period dates – The specific days covered in your company’s defined pay period matter for prorating.
- Base pay rate – Your per day or per hour pay rate serves as the basis for prorating your partial pay period earnings.
Understanding these components provides insight into how your first prorated check is determined.
Will all my deductions be taken out?
Yes, your normal deductions will be taken out of that first prorated check. This includes federal, state, and local taxes along with any voluntary deductions you’ve elected such as health insurance premiums, 401k contributions, etc. The prorated amount accounts for your gross earnings based on days worked. Applicable taxes and deductions are then withheld just as they would be for any other pay period.
However, note that certain deductions may be prorated based on your start date or eligibility period. For example:
- Health insurance – Premium deductions often start the 1st of the next month after your hire date.
- 401k deductions – May be prorated based on the waiting period to enroll in the plan.
- Company benefits – Eligibility periods may impact when deductions start.
Check with your HR department if you have questions about prorated benefits on your first check.
When will I get a full paycheck?
After you receive the initial prorated check, your next paycheck should be for the full pay period amount. At that point your pay is synced up with the normal payroll schedule.
For example, if you start on June 15th and get a prorated check on June 24th, your next check on July 8th would be the full bi-weekly amount covering a full 2 week pay period.
Once you make it through the first partial pay period, then you can expect to receive full paychecks according to the company’s standard payroll frequency and pay dates.
How to calculate prorated pay
As we saw in the example earlier, calculating prorated pay involves dividing your compensation by the pay period length to get a daily rate, and then multiplying by the number of days worked.
For example:
| Pay frequency | Pay period length | Calculation |
|---|---|---|
| Weekly | 7 days | (Weekly salary / 7) x Days worked |
| Bi-weekly | 14 days | (Bi-weekly salary / 14) x Days worked |
| Semi-monthly | 15 days | (Semi-monthly salary / 15) x Days worked |
| Monthly | 30 days | (Monthly salary / 30) x Days worked |
You can use this formula to get a sense of how your first prorated check will be calculated based on your company’s payroll schedule. Reach out to your HR or payroll department if you need clarification on the specifics.
Exceptions to prorated pay
While prorating for a partial first pay period is the general practice, there can be some exceptions:
- Some companies opt to pay new hires for a full pay period on the first check. But this is less common.
- Salaried exempt employees may receive a full salary amount even if starting mid-period.
- Union or contract-based roles may have negotiated pay practices that differ.
- State laws could alter prorated pay requirements in some cases.
Unless notified otherwise, assume your first check will be prorated. But if you have questions, check with your HR contact when starting the job.
Getting clarity on your pay
Receiving that first prorated paycheck can create confusion if you don’t understand how it was calculated. Make sure to clarify the following when starting a new job:
- Company pay schedule – When and how often are employees paid?
- Pay period dates – What are the start and end dates that bracket the pay period?
- Pay rate – What is your hourly rate or salary broken down over the pay period?
- Deductions – What pre-tax and post-tax deductions will come out of your check?
- Prorated pay policy – Does the company prorate for mid-period start dates?
HR and payroll departments should be able to provide guidance on the pay practices. Review your pay stub closely and follow up on any questions before the next paycheck. It is much easier to clarify issues earlier rather than later down the road.
Knowing what to expect with your prorated first check can set you up for a smooth pay experience when starting a new job mid-period. While it may be a smaller payment, you’ll be on track for full compensation once you get through the initial ramp up period.
Frequently Asked Questions
Do I accrue paid time off for the full pay period or is it also prorated?
Most companies will also prorate any paid time off (PTO) accrual in your first partial pay period. Once you complete one full pay cycle, then PTO accrual would increase to the normal full rate.
When are taxes taken out if I start mid-period?
Taxes are withheld from your first prorated check. The taxes are calculated based on year-to-date earnings and deductions. So taxes on your full normal pay period check may differ once you complete a full cycle.
Could my prorated amount be paid as a lump sum later?
Some companies may provide a lump sum to cover the prorated amount from your initial partial pay period. But this approach is less common. In most cases, the prorated amount is paid on the first normal pay date.
Are bonuses and commissions also prorated?
Bonuses and commissions are typically earned based on defined periods of work or goal achievement. If those conditions are met, most companies will pay full bonus or commission amounts rather than prorating.
What if I start on a pay date instead of mid-period?
If your start date aligns with the start of the pay period, you may receive a full paycheck for that first period. Some companies still prorate but it depends on internal policy. Check with HR if starting right on a pay date.
The Bottom Line
When starting a job midway through the pay period, expect your first paycheck to be prorated for the initial partial period worked. This allows you to get paid for that ramp up time while synchronizing onto the normal payroll schedule. Once you get that first prorated check, you’ll then receive full pay periods amounts moving forward. Knowing how prorated pay is calculated and when you’ll get that first check helps set proper expectations.