Summary

The most common situation in which Backpays occur is after a backdated wage increase.

Backpay is the total amount to be paid to each employee to account for the shortfall in the wages already paid at the old rate, and the wages that would have been received at the new rate.

Procedure

To create a Backpay

1. Create an Allowance that will be used only for Backpay transactions
2. Open a Manual Pay for the Backpay
3. Create a record in the Backpay entity
4. Run the Backpay Wizard
5. Review Backpay transactions
6. Process the Backpay Wizard
7. Process the Manual Pay
8. Close the Manual Pay and run reports