How Proration Works
Prorating a bonus or commission means scaling the full-period amount down to reflect only the portion of the period you actually worked. The formula for doing that isn't standardized, some plans count every calendar day, others count only business days, and some use a completely different method spelled out in the plan documents. This calculator does the math once you tell it which formula to use.
Key Points
- Proration formulas vary by employer and plan, there's no single legal standard.
- Calendar-day and business-day methods can produce meaningfully different results.
- If your plan uses a different formula entirely, use the custom percentage option to match it.
- Commissions and bonuses that are earned are generally considered wages in California once the conditions for earning them are met.
What This Calculator Doesn't Do
It doesn't know your employer's actual bonus or commission plan, and it doesn't determine whether a payment was earned in the first place, those questions depend entirely on your plan's specific terms. It only calculates the arithmetic once you supply the amount and the proration method.
Prorating a bonus or commission means multiplying the full amount by the fraction of the period you worked. Calendar days, business days, or a custom percentage all give different results, use whichever method matches your actual plan.
Frequently Asked Questions
How is a prorated bonus calculated?
Divide days worked by total days in the period, then multiply that fraction by the full bonus amount.
Is my employer required to prorate my bonus?
It depends entirely on your specific plan's terms, check your plan documents or offer letter.
What if my employer's formula doesn't match this calculator?
Use the custom percentage option and enter the fraction from your own plan's formula.
Keep Reading
This calculator and article provide general educational information and are not individualized legal advice, and may not reflect the most current law. Reading this page does not create an attorney-client relationship with the Law Offices of Corey A. Pingle. Some workplace concerns may be resolved directly with an employer, while others may warrant legal guidance. If you’d like guidance specific to your situation, contact our office or start a free case review.