I am dealing with a client who has acquired a business on 22nd Feb. Payroll providers of the previous owner has been calculating salary based on 5 days working week i.e. 260 days a year / 21.666 days per month which is normal. However they have allocated the salary for the month of Feb as 15 days to previous owner and balance to my client. My client's argument is 5 days should be allocated to him and balance to previous owner.
The 2 calculations will obviously result in significantly different numbers due to salary being divided by 21.666 days but multiplied by 20 days if we purely go for number of days in the month of Feb.
Who should be picking up the difference? Has anybody dealt with this kind of issue before?