Can an increase be approved electronically?

Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes, provided intent, consent, attribution, and record retention requirements are met.

What if the effective date must change after signing?

Prepare an amendment or a new form documenting the revised effective date and obtain the same approvals; record both documents to maintain an audit trail of changes.

Who fixes payroll errors caused by this form?

Payroll corrects payroll processing errors, but HR and the authorizing manager should collaborate to document the cause and issue corrected payments or adjustments as needed.

Are notaries required for this form?

Not typically. Notarization is rarely required for internal compensation changes unless state law or company policy specifically demands it.

What data must be retained and for how long?

Retain the signed form with payroll records per IRS minimums (IRC §6501(a)) and any applicable industry rules; common practice is at least three to seven years.

Can I revoke or cancel an approved increase?

Revoke only with documented agreement and new approvals. Record the revocation with date, reason, and signatures to prevent disputes and support audits.

Electronic Signature
Templates
HR
Employee Performance Increase Form

Employee Performance Increase Form

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EMPLOYEE PERFORMANCE INCREASE FORM

Personal Information

Full Legal Name Employee ID Home Address

Phone

Email

Position and Employment

Current Job Title Department Reporting Manager

Date of Hire: Current Annual Base Salary: $ Pay Frequency: Annual Monthly Bi-weekly

Proposed Increase

Proposed Increase Amount: $ Proposed Increase Percentage: % New Annual Base Salary: $ Effective Date:

Primary Business Reason for Increase

Performance Summary

Performance Period: From to

Performance Rating (select all applicable)

Exceeded Expectations Met Expectations Partially Met Expectations Did Not Meet Expectations

Key Metrics and Achievements

Manager Assessment & Budget Impact

Manager Name Manager Comments Cost Center / Budget Code

Budget Approved: Yes No

Employment History (Most Recent Two Employers)

Employer 1 — Company Name Title / Role

Dates Employed:

Primary Responsibilities Reason for Leaving

Employer 2 — Company Name Title / Role

Dates Employed:

Primary Responsibilities Reason for Leaving

Education

Highest Degree or Certification Institution Graduation Date

Professional References

Reference 1 — Name

Phone

Email

Relationship Reference 2 — Name

Phone

Email

Relationship Reference 3 — Name

Phone

Email

Relationship

Legal Disclosures

At-Will Employment: Nothing in this form alters the at-will nature of employment. The Company or the employee may terminate employment at any time, with or without cause or notice, unless a separate written agreement signed by an authorized representative explicitly states otherwise.

Equal Employment Opportunity: The Company is an equal opportunity employer. All employment actions, including compensation decisions, are made without regard to race, color, religion, sex, national origin, age, disability, sexual orientation, or other protected characteristics.

Authorization to Verify: I authorize the Company and its agents to contact previous employers, references, and educational institutions listed on this form for the purpose of verifying employment history, education, and performance-related information in connection with this compensation action and ongoing personnel management. I understand that such verification is a condition of employment and of consideration for compensation adjustments.

Background Check Consent: I consent to a background check (employment, education, and criminal) as required for this action.

Certification

Applicant Certification: I certify that the information I have provided on this form is true and complete to the best of my knowledge. I acknowledge that any false statements or material omissions may subject me to disciplinary action up to and including termination. I accept the terms of the proposed compensation adjustment as recorded on this form, subject to final approval by authorized Company representatives.

Authorization to Proceed: By signing below, the approver authorizes payroll and HR to implement the approved increase effective the date specified and confirms that funds have been approved and documented to support the change.

Approvals (Administrative Use)

HR Reviewer's Name

HR Approval: Approved Not Approved

HR Comments

Employee:

By:

Date:

Approving Manager / HR:

By:

Date:

What the Employee Performance Increase Form Is and When It's Used

The Employee Performance Increase Form documents a merit-based salary or wage change tied to an employee's performance review. It records the employee's legal name, job title, current and proposed compensation, effective date, reason for the increase, and required approvals. Employers use the form to trigger payroll updates, confirm manager and HR authorizations, and create an auditable record for compliance and internal reporting. The document can be maintained in paper or electronic form and may be executed with an electronic signature that meets U.S. legal standards under ESIGN and applicable state UETA statutes.

Why a Standardized Performance Increase Form Matters

A consistent form improves transparency, reduces payroll errors, and provides a clear audit trail for compensation decisions. It helps ensure approvals are documented, tax and benefits impacts are captured, and managers follow established pay policies.

Who Completes and Uses This Form

Typical users include HR staff, hiring managers, payroll teams, and the employee's direct supervisor.

HR administrator: Prepares the form, validates policy compliance, and routes for approvals.
Hiring manager: Provides performance rationale, proposes compensation changes, and signs approvals.
Payroll administrator: Receives final form to update payroll and withholding records.

The form creates a single source of truth for compensation changes and serves personnel, payroll, and compliance needs.

Core Elements of a Professional Employee Performance Increase Form

A complete form structures the compensation decision into identifiable fields, supporting evidence, and an approval chain so payroll and records staff can act quickly and consistently.

Purpose

State the reason for the increase (merit, promotion, market adjustment) and cite performance metrics or evaluation period that justify the change.

Performance Metrics

Reference objective measures (goals met, KPIs, ratings) and attach or link to the performance appraisal or supporting documentation for auditability.

Compensation Details

Include current pay, new pay (hourly or salary), percent change, pay frequency, and any one-time payment or retroactive amount.

Approval Workflow

List required approvers by role, include signature fields, and specify routing order and deadlines to prevent processing delays.

Effective Date

Clearly state the effective date and whether pay is prospective or includes retroactive pay and how retro pays will be calculated.

Recordkeeping

Capture submission date, document version, and retention instructions so HR can meet audit and legal retention obligations.

Step-by-Step: Completing the Employee Performance Increase Form

Follow these sequential steps to prepare, approve, and process the increase without introducing payroll errors or compliance gaps.

01

Prepare the form: Gather performance records and draft the justification.
02

Enter employee data: Complete identification, job, and compensation fields accurately.
03

Obtain approvals: Route to manager, HR, and finance for signatures.
04

Submit to payroll: Provide completed form before payroll cutoff for timely processing.

How to Configure an Online Workflow for This Form

Set up the digital workflow to automate routing, reduce errors, and ensure records integrate with payroll and HR systems.

Field mapping	Map form fields to HRIS/payroll fields for automatic updates.
Conditional fields	Show retroactive pay fields only when retro pay is selected.
Notification rules	Email approvers and reminders based on routing status.
Routing order	Enforce manager first, HR second, finance final approval.
Integrations	Connect to HRIS, payroll, and document storage systems.

Where Completed Forms Should Be Sent

After approvals, deliver the final form to systems and teams that will take action and retain a copy for records.

HRIS upload: Attach or sync the signed form to the employee's HR record.
Payroll intake: Send to payroll for rate change and tax withholding adjustments.
Employee copy: Provide a signed copy to the employee for their records.
Personnel file: Store a final version in the central personnel or compliance file.

Digital Signing and Platform Requirements

Choose a platform that supports common formats, secure signatures, and integrations with HR and payroll systems.

File formats: PDF and DOCX supported.
Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace.
Authentication: Email, SMS code, or stronger methods.

Timing Considerations and Typical Deadlines

Adhere to payroll schedules and internal approval SLAs so pay changes occur on the intended payroll run and avoid retroactive complications.

Effective Date:

Set clearly; affects payroll processing and benefits eligibility.

Payroll cutoff:

Submit before payroll cutoff, typically one pay period prior.

Retroactive pay window:

Calculate and document retro pay within one pay cycle when possible.

Employee notice:

Provide written notice to the employee when the change is finalized.

Record retention:

Save the final signed form in HR records immediately after processing.

Key Milestones from Request to Payroll Action

Track milestones to ensure approvals and payroll updates happen in sequence and within expected timeframes.

01

Request Submitted

Manager files the proposed increase with supporting performance documentation.

02

Manager Review

Direct supervisor confirms performance rationale and proposed compensation.

03

HR & Finance Approval

HR validates policy; finance confirms budget and payroll feasibility.

04

Payroll Processing

Rate change entered and first affected payroll run scheduled.

Common Mistakes to Avoid When Preparing the Form

Entering a name that differs from payroll records, causing tax or benefit enrollment mismatches and delays.
Failing to attach the performance evaluation or justification, which can invalidate the merit decision during audits.
Routing approvals out of order or missing an authorized finance signatory, which delays payroll changes.
Using ambiguous language for effective dates or retro pay calculations that leads to payroll errors or disputes.

Potential Risks and Compliance Consequences

Payroll Errors: Late pay or incorrect amounts.

Tax Withholding: Incorrect withholding and reporting.

FLSA Exposure: Misclassifications affecting overtime.

Wage Notice: Noncompliance with state pay notice laws.

Audit Risk: Insufficient documentation for audits.

Benefit Miscalculation: Errors in retirement and insurance contributions.

Security and Compliance Considerations

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest.

Audit Trail: Timestamp, IP, and action history recorded.

Access Controls: Role-based access and SSO available.

HIPAA/BAA: BAA required when forms include protected health information.

Certifications: SOC 2 Type II and ISO 27001 support compliance.

Retention Policy: Secure storage with controlled access and logs.

Digital Features That Improve Accuracy and Speed

Using a purpose-built digital form reduces manual steps and ensures consistent data capture for payroll and HR reporting.

Digital Signatures

Legally binding eSignatures supported under ESIGN and state UETA laws provide intent, attribution, and an audit trail for approval events.

Conditional Fields

Show or hide retroactive pay, tax adjustments, or benefit impacts based on selected options to prevent irrelevant entries.

Reusable Templates

Create a template for standardized increases to speed completion and reduce variation across departments.

Integrated Audit Trail

Automatic capture of signer identity, timestamps, and field changes simplifies compliance reviews and internal audits.

Representative eSignature Pricing and Feature Comparison

Compare common pricing and capability criteria for electronic signatures and document workflows; signNow is listed first for direct comparison.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Who Signs and Approves the Form

HR Manager

The HR Manager reviews the proposed increase for policy compliance, confirms budget availability where applicable, and is responsible for final HR authorization and record filing. They ensure the form is complete before payroll entry and retain a copy per retention policy.

Payroll Lead

The Payroll Lead verifies rate changes, adjusts tax withholdings and benefit calculations, and schedules the change for the correct payroll run. They may reject incomplete forms and request clarifying documentation prior to implementation.

Frequently Asked Questions About the Employee Performance Increase Form

Answers to common questions about signatures, effective dates, corrections, and recordkeeping for compensation changes.

Need help? Contact support

Can an increase be approved electronically?
Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes, provided intent, consent, attribution, and record retention requirements are met.
What if the effective date must change after signing?
Prepare an amendment or a new form documenting the revised effective date and obtain the same approvals; record both documents to maintain an audit trail of changes.
Who fixes payroll errors caused by this form?
Payroll corrects payroll processing errors, but HR and the authorizing manager should collaborate to document the cause and issue corrected payments or adjustments as needed.
Are notaries required for this form?
Not typically. Notarization is rarely required for internal compensation changes unless state law or company policy specifically demands it.
What data must be retained and for how long?
Retain the signed form with payroll records per IRS minimums (IRC §6501(a)) and any applicable industry rules; common practice is at least three to seven years.
Can I revoke or cancel an approved increase?
Revoke only with documented agreement and new approvals. Record the revocation with date, reason, and signatures to prevent disputes and support audits.

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