Prorated PTO Calculation - Calculate PTO for Partial Years
Learn how to calculate prorated PTO for new hires, part-time employees, and mid-year starts. Formulas, examples, and tips for accurate prorated paid time off calculations.
What is Prorated PTO?
Prorated PTO is paid time off calculated proportionally based on the portion of the year worked. Used for new hires who start mid-year, employees leaving mid-year, part-time workers, or when employment doesn't cover the full accrual period.
Prorated PTO Formulas
For new hires: Annual PTO × (Months Worked ÷ 12) = Prorated PTO. For part-time: (Full-Time Annual PTO × Weekly Hours) ÷ 40 = Part-Time PTO. For mid-year termination: Annual PTO × (Months Worked ÷ 12) - PTO Used = Prorated Balance.
Common Scenarios
New hire starting June 1: 80 hours × (7 months ÷ 12) = 46.67 hours. Part-time 20 hours/week: (80 hours × 20) ÷ 40 = 40 hours/year. Employee leaving in August: 80 hours × (8 months ÷ 12) = 53.33 hours earned.
Tips for Accurate Calculation
Use calendar months or exact days worked. Round according to company policy (often to nearest hour). Verify your employer's proration method. Track both accrued and used PTO. Keep records of start/end dates.