When onboarding new contractors, if their start date is not the 1st of the month, you will need to select the **First payment amount. **This refers to the prorated amount for the first month's pay.

## How do I calculate the prorated amount?

The most accurate way to calculate custom amounts and daily rates is by calculating based on working days during the pay period. So **X month = X working days if** the contract is 40** hours per week, so** we assume 5x8 hour days.

The formula is as follows:

**Calculate the number of working days for a specific pay period (assuming 5x8 hour days per week)****Divide the monthly Fee by the number of working days = Daily Rate****Multiply the number of days worked * Daily rate = Final amount**

**Scenario**

- Start date: Nov 14, 2022.
- Days worked in November: 13 days (Nov 14 - Nov 30)
- Monthly fee: $5000

Calculations are:

- Number of working days in November 2022:
**22 days** - Daily rate:
**$227.27**($5000/22) - Amount to be paid:
**$2945.54**(227.27*13)