Summary

The Backpay Wizard uses the settings in this window to calculate the amount of backpay for each employee and code it to an allocated allowance.

Example

For example, if employees receive a 7% increase on their wage rates:

Rate change type

This is the method used when the Backpay Wizard calculates the backpay.

% of Rate

An increase has been based on a percentage of an employee's standard rate. For example, a 7% increase in hourly rate.

Fixed rate increase

A fixed amount is added to the employee's rate during the period covered by the backpay. For example, if an employee had 40 hours ordinary time during the backpay period, and the fixed rate increase was 25 cents per hour worked, then the backpay amount will equal $10.00.

% of amount

Employees will receive an increase based on a percentage of the total amount paid to them in the backpay period. For example, 5% overall.

Amount per trans

Backpay is based on a specified amount per transaction. This may be most suited to salaried employees.

Default rate change

The value entered here reflects the numerical value of the increase.

Use allowance code

This is the allowance that the backpay will be coded to. It is advisable to create a separate allowance for each backpay that you calculate.

Lump sum in arrears after

This date determines whether lump sum payments are treated as lump sum in arrears or bonuses.

The Backpay Wizard looks backward in time from today:

• If the payment occurred in a pay with an end date 'after' this date, it is treated as lump sum in arrears.
• If the payment occurred in a pay with an end date on or 'before' this date, it is treated as a bonus.

For example, if you entered 01/01/2012, payments in a pay that ended on 31/12/2011 are treated as lump sum in arrears, and payments in a pay that ended on 01/01/2012 or 02/01/2012 are treated as bonuses.

From transaction

If this check box is ticked, the backpay transactions will use the same cost centres as historical transactions.

Use cost centre

Select the cost centre that you want to use for the backpay.

To activate this field, remove the tick from the check box beside From transaction.