Annual Bonus Prorated

[acamhr]

Hello! I am new to HR and need some help figuring out a formula to calculate prorated bonuses based on date of hire.
Anyone that has been here a year or more will receive their full bonus amount; those hired anytime within the year must have their bonuses prorated.
Currently I am using the following: =B2*YEARFRAC(B1,"12/31/2023",3)
Found on another thread and it's as close as I can get, while being admittedly not great at math. Is this sufficient?

There are some employees that have had mid-year changes to their rate of pay, which also must be considered when determining the bonus amount issued.
Bonuses can be a percentage of their salary (MAX 10%), or a dollar amount (eg. $200-$1000).

Please let me know if any of this makes any sense.
Here are a couple test employees to check against:
- Bob, Dylan
- Hire date: 8/7/23
- Salary: $50,000
- Bonus Amount: 5%

-Sarah, Jessica Parker
- Hire date: 5/29/23
- Hourly: $18.00 hour
- Bonus Amount: $250

Any insight you can provide would be amazing!

 

[t0ny84]

To confirm:
- Bob, Dylan
- Hire date: 8/7/23
- Salary: $50,000
- Bonus Amount: 5%

Bonus for Dylan should be 5% of $50,000 prorated based on his start date l. So between 8/7/2023 till now?

-Sarah, Jessica Parker
- Hire date: 5/29/23
- Hourly: $18.00 hour
- Bonus Amount: $250

Bonus for Jesica would be $250 prorated based on her start date 5/29/2023?

Are the bonuses prorated daily or monthly? E.g. if I start on 10th May I would get my bonus prorated from 10th May or from 5th month?

t0ny84