Backpay
 

When people receive a back-dated pay increase, they are entitled to a "Backpay" to pay the extra money owed to them.

Backpay Calculator

To calculate a Backpay, enter a "BACKPAY" transaction on the person's timesheet. A special calculator will be displayed, with instructions to help you calculate the backpay.

Backpay Calculator

Instructions

  1. Check / Enter the appropriate old and new rates, below.
  2. Enter the number of hours to pay in the "Quantity" field. (Use Payroll History or the Date Calculator to calculate this figure).
  3. Press the "Calculate Backpay Rate" button.
  4. When finished, press the 'Save this Transaction' button.

Date Calculator

From:
To:
 
1 weekdays * 8.0 hrs/day = 8.0 hrs
 

New Pay Rate: per annum ($0.0072 / hour)
less Old Pay Rate: per annum ($0.0070 / hour)
equals Backpay Rate:0.5000 per hour ($0.0003 / hour)
times Hours to Backpay:
equals Backpay Amount:$0.0200

Tax on Backpay

Backpays are calculated using the Extra Pay (Emolument) tax calculation, as they are a lump sum paid additionally to a person's usual pay. If you want to see the tax calculations applied to the backpay, select the 'Calculation Details' link in the timesheet menu.