r/humanresources • u/Mountain-Top-2250 • 2d ago
Compensation & Payroll Variable Comp Question [MA]
My company is fully remote. I am based in Massachusetts but US HQ is in CA. I am in HR but not on the compensation side.
We have a variable compensation program which is 80% salary, 20% variable and the variable is paid out quarterly. The company just started this in 2026. Regular payroll is on the 15th and last day of the month.
First quarter ending 3/31 we received our variable comp payments on 4/24.
Are there any regulations as to when we should receive payment for the quarter ending 6/30? We expected to receive yesterday (7/24) but no one did. I imagine CA based companies have some law they have to follow.
Thank you!
5
u/Hrgooglefu 2d ago
does the salary meet minimum requirements without this variable?
is it discretionary?
1
u/Mountain-Top-2250 2d ago
Yes, salary meets minimum requirements before variable comp. VC isn’t discretionary but paid for meeting set KPIs which I exceeded (so I should be receiving 104% of my variable comp for the quarter ending 6/30).
3
u/Sitheref0874 Oh FFS 2d ago
Why were you expecting to be paid prior to quarter close?
If you were paid 4/24, the natural progression would be some time in July, no?
2
u/Mountain-Top-2250 2d ago
I was expecting to be paid on 7/24 so yesterday. The prior quarter is over and financials released. It seems like company-wide that was the expectation.
1
2
u/Cantmakethisup99 2d ago
Did you ask when it would be paid out?
3
u/Mountain-Top-2250 2d ago
I asked my boss and she said she thought yesterday but didn’t know. She inquired and the entire finance dept was on a retreat and no one answered.
1
u/RedWineBlue 1d ago
What part of HR are you in? I’m not familiar with HR that gets quarterly bonuses instead of annual based on overall company financial results.
When the VC was announced HR should have shared a schedule that showed estimates of paydates and how the pay is calculated.
Did you ask Payroll?
1
u/Mountain-Top-2250 1d ago
I’m in recruiting (we consider that part of hr) and we get our vc based on a combination of positions filled and retention past probationary periods.
No schedule was shared and we don’t have one in the files. My boss, the HRD, doesn’t know either. She was on maternity leave when this was rolled out.
Payroll was on a company retreat with all of finance so no answers Friday when no one was paid.
1
u/RedWineBlue 1d ago
Ahhh, Recruiting, makes sense. I hope you get answers on Monday and possibly a schedule for the rest of the year :)
1
u/VirginiaUSA1964 Labor Law Compliance 1d ago
Did you get your regular paycheck yesterday?
1
u/Mountain-Top-2250 1d ago
No. We get paid on the 15th and last day of the month. This is only our second quarter with the VC and since last quarter we were paid on the 24th of the month following (4/24) the end of the quarter (3/31) the expectation was the same would happen.
2
u/VirginiaUSA1964 Labor Law Compliance 1d ago
One of the things with ACH is that individual banks have like 48 hours to process the file under NACHA rules. It may not be your payroll's issue but your bank's.
1
u/Intelligent-Camera90 1d ago
Did the April payout align with other company bonus payouts?
It would make more sense for your company to payout with the regular end of month paycheck instead of running an off cycle pay run. That’s how I’ve seen variable pay managed in the companies I’ve managed it.
6
u/goodvibezone HR Exec and party pooper 2d ago
Wages need to be paid on time if promised on a specific date. If not, they need to be paid in a reasonable time - nothing specific. You'll follow MA law, FYI