Back Pay

If the back pay is a missed Bonus or Allowance,Perform an Adjustment Pay for the relevant employee(s) and add the amount against the appropriate Before Tax Allowance (eg. Bonus, Tool Allowance, Meal Allowance, Vehicle Allowance).

For more complex situations (e.g. where you find that you have been underpaying an employee over a period of time) you should proceed as follows:

If a suitable Allowance Type does not already exist, create a Before Tax Allowance called Back Pay (see Allowances).

Perform an Adjustment Pay and enter the total before tax underpayment amount against the Back Pay allowance.

If necessary, adjust the Tax amount (see Tax Adjustment).

Optionally, add an explanatory comment (eg. Back Pay is for underpayment between dd/mm/yyyy and dd/mm/yyyy) (see Pay Advice).

Double-check all figures before finalising the pay.

Print the Pay Advice and provide it to the employee.