Prorate Bonus Calculator

Calculate prorated bonuses based on employment duration, performance metrics, and company policies. Ensure fair and accurate compensation!

💰 Fair Compensation • 📅 Time-based • 🎯 Performance-driven

Bonus Parameters

Annual target bonus bonus

Base salary

Performance Metrics

0% 100% 200%
0% 100% 150%

Employment Timeline

Employment Period
Start
End
275 days of 365 days

Performance Metrics

Individual Performance
Company Performance

Current Formula:

Compensation Details:

Method: Daily Proration • Frequency: Annual • Tax: Pre-tax • Currency: USD

Bonus Period

Full Month
Partial Month

Bonus Proration Guide

What is Bonus Proration?

Bonus proration is the practice of adjusting bonus payments based on the actual time worked during the bonus period, ensuring fair compensation for partial employment periods.

Prorated Bonus = Base\ Bonus \times \frac{Days\ Worked}{Total\ Days} \times Performance\ Factor

Proration Methods

  • Daily Proration: \frac{Actual\ Days\ Worked}{Total\ Days\ in\ Period}
  • Monthly Proration: \frac{Full\ Months + Partial\ Month\ Fraction}{12}
  • Quarterly Proration: \frac{Quarters\ Worked}{4}
  • Performance-based: Base \times Time\ Factor \times Performance\ Rating

Key Considerations

  • Employment Status: Full-time vs part-time considerations
  • Performance Metrics: Individual and company performance factors
  • Department Multipliers: Role-specific bonus adjustments
  • Tax Implications: Bonus taxation and withholding requirements

Best Practices

  • Clear communication of proration policies
  • Consistent application across all employees
  • Documentation of calculation methods
  • Regular review of bonus structures
  • Compliance with labor laws and regulations