Marlin HR enables paying back pay using an Adjustment Pay.
The method depends on whether the back pay is a missed bonus or allowance, or an underpayment over a period of time.
Missed Bonuses Or Allowances
If the back pay is a missed bonus or allowance, add it using an adjustment pay run.
To add a missed bonus or allowance:
- Perform an adjustment pay run for the relevant employees
- Add the amount against the appropriate Before Tax allowance
(e.g. Bonus, Tool Allowance, Meal Allowance, Vehicle Allowance)
Underpayments
For more complex situations, such as underpaying employees over a period of time, add back pay as a separate allowance.
To add back pay for an underpayment:
- Add a Before Tax allowance called Back Pay if a suitable allowance type does not exist.
- Perform an adjustment pay run
- Enter the total before tax underpayment amount against the Back Pay allowance
- Adjust the tax amount if required
- Check all figures before finalising the pay run
Tip
Add a comment to the pay advice explaining the payment (e.g. Back Pay is for underpayment between dd/mm/yyyy and dd/mm/yyyy).