Pro-rating the allowance for a new hire

How the pro-rate toggle reduces a new employee's benefit allowance based on their start date within the current benefit period.

When you add an employee partway through the benefit year, they usually should not get a full year's allowance. CLVR handles this with a pro-rate toggle: it reduces the new hire's benefit allowance in proportion to how much of the current benefit period they will actually be with the company. The toggle is on by default, so in most cases you do not have to do anything. This article explains what the toggle does, the figures it shows you, and when to switch it off.

Where the toggle appears

Pro-rating is offered in both ways of adding an employee:

• Add Single Employee, in the Benefit Allowance section of the form, as the switch Pro-rate benefit allowance based on start date.
• Bulk Import, on the review screen, as the switch Pro-rate benefit allowance for new employees above the list of employees to add.

In both places the switch is on by default, and it only has an effect when your company has a base allowance greater than zero. If your base allowance is zero, there is nothing to pro-rate.

The preview in Add Single Employee

When the toggle is on and you have set a Start Date, the form shows a live preview box titled Allowance will be pro-rated to the calculated amount. It breaks down exactly how that figure was reached:

• Benefit period: the start and end dates of the current period (one year, ending on your company's allowance reset date).
• Full allowance: the Base allowance a full-year employee would receive.
• Start date: the date you entered for the new hire.
• Days in period: the number of days in the full benefit period.
• Days employed: the days from the start date to the end of the period.

Below those it shows the calculation itself: the full allowance multiplied by the share of the period the employee will be present, which gives the pro-rated amount.

How the period is decided

The benefit period is always one year, ending on your company's allowance reset date and starting one year before that. A new hire's pro-rated allowance reflects the days from their start date to the end of that period, as a share of the full year. So the closer their start date is to the reset date, the smaller their first allowance, and at the next reset they move to the full base allowance like everyone else.

Turning the toggle off

Switch Pro-rate benefit allowance based on start date off (or the bulk equivalent) when you want the new hire to receive the full base allowance regardless of when they start. The preview box disappears and the employee is created with the full amount.

Adjusting an existing employee instead

Pro-rating only applies when you are adding a brand-new employee. It is not the tool for changing someone who is already in CLVR. To add to or deduct from a current employee's allowance, open their detail view and use Add/Deduct Allowance, which changes their allowance for this year only. For a lasting change, edit their benefit allowance directly.

Troubleshooting

• The preview box does not show. Pro-rating needs a base allowance greater than zero and a valid Start Date. Check both, and that the toggle is on.
• The amount looks too high or too low. Confirm the Start Date is correct: the allowance scales with how much of the period remains after that date.
• A new hire should get the full amount. Turn the toggle off before you save so the full base allowance is applied.
• I need to change someone already added. Use Add/Deduct Allowance on their detail view rather than re-adding them.