Back Pay is the difference amount to be paid to an employee to account for the shortfall in the wages already paid.

For Example

Employee E001 had a promotion in January 2018 with a salary increase. Th employee rate changed from $37.24 per hour to $40.00 per hour. However, since his new contract was delayed and HR did not update the system, the pay for January was created with the existing rate. In February, a Pay Back can be created to pay the difference for the pay that was created in January.

Notes:

Set the access for "Back Pay Schedule"and "Back Pay Schedule Report"as "Active" under " Role Menu Access " to allow users to view records.

Set the access for "Back Pay Schedule - Create Pay" as "Active" to allow users to create a Back Pay.

Enable the "Allow Add", "Allow Edit" and "Allow Delete" access for a user to make changes.

Enable process "SYS001" under "Linkweb - Company Administration - Processes".

Steps to create a Back Pay:

Click on the "Green Plus" sign to add a record. This will open the "Edit Form".

Enter below details
1. "Pay Date From" and "Pay Date To" - Back pay will be created for all pays in the selected date range.
2. Rate Type - Select the rate type to be used to calculate the back pay rate:
  1. Difference - The rate to be paid is calculated with the difference of "This Rate - Paid Rate". For example, if paid rate was $37.24 and new rate is $40.00 then Back Pay rate will be $2.76. "This Rate" is defined in number 3 below.
  2. Percentage of Rate Paid - The rate to be paid is computed based on the set percentage. For example, if paid rate was $37.24 and percentage for "Back Pay" is set to 5 then back pay will be created with rate $1.862 (5%*37.24). The percentage is defined in number 3 below.
  3. Value - The rate to be paid is calculated using the defined value. For example, if paid rate was $37.24 and value for "Back Pay" is set to 5 then back pay will be created with rate $5.
3. Rate - Enter the back pay rate, percent or value.
4. Pay Team - Select the pay team to create the back pay for a specific "Pay Team". This will create the pay for all employees in the selected "Pay Team".
5. Territory - Users can select to create the back pay for a specific "Territory". This will create the pay for all employees in the selected "Territory".
6. Branch - Users can select to create the back pay for a specific "Branch". This will create the pay for all employees in the selected "Branch".
7. Cost Centre - Users can select to create back the pay for a specific "Cost Centre". This will create the pay for all employees in the selected "Cost Centre".
8. Employee - Users can select to create the pay for a specific "Employee".
  1. Users can add employees into the schedule under the "Employee List". Refer to Figure 1.
  2. To create the pay for all employees do not filter the "Territory", "Branch", "Cost Centre" or "Employee".
9. Update Employee Rate - "Update Employee Rate" if enabled will update the employee's pay rate with the back pay rate. The rate is changed at:
  1. Employee rate and effective date is updated under "Linkweb - Employee Profile - Employee Maintenance".
  2. Employee Standard Pay rate is updated.
  3. Rate on the payslip is updated.
10. Save. Click the "Floppy Icon". This will compute the back pay schedule with status as "Active". Refer to Figure 1.
  1. Users can generate the "Back Pay Schedule" report to view the pay components. Refer to Figure 3.
11. Edit Back Pay - Users will be able to only edit "Active" back pay schedules.
  1. Click on the "Grey Arrow" to expand into the details of the schedule. This will list the employees in the schedule.
  2. Expand the employee record. This will load the Back Pay details for the selected employee, users can edit the "Back Pay Amount" or payroll "Paycode". Refer to Figure 2.
12. Click on the "Create Pay" button to create the back pay.
  1. When a pay is created from "Back Pay" the pay type is "Special". Configure the rules for the "Special" pay type under Payrun Type Configuration before creating a back pay. Only the configured values will populate in the back pay.
  2. Back Pay schedule status be closed and updated as "Completed" once the pay is created.
  3. Pay record can be reviewed under "Linkweb - Payroll Processing - Pay Processing".
13. Add Notes and Attachments.
  1. The notes is updated with error log during pay processing.

Figure 1: Back Pay Schedule

Figure 2: Edit Back Pay

Figure 3 :Back Pay Schedule Report