Available for the following plans: Employment Lite, Employment Plus, Employment Unlimited
Available for the following Payroll plans: Standard, Premium, Core Payroll
Available for the following user access levels: Admin
As an organisation, you may apply a pay rise to an employee and wish to process back pay from a certain date. Outstanding back payments may occur if the pay rise update was agreed to earlier, but the update was not applied before a pay run. Back payment lets you change an employee's pay rate and pay any outstanding payments if their pay rate was not updated before a pay run.
What you need to do
There are three steps that an administrator needs to complete, to apply a back payment after you have updated an employee's pay rate. An administrator needs to complete these actions in the payroll classic platform. The three steps are:
- Log into your Employment Hero payroll classic platform.
- Click the Business Settings menu.
- Click the Pay Categories button.
- Click the Add button.
- Enter a name for the new category. In this case, enter Back Payment.
- Click the Save button.
- In the Units drop-down select the Fixed option.
Helpful Hint
If you paid overtime during the back pay period, then you will need to either manually calculate the overtime back pay required and enter this amount into the back pay earnings line, or select Hourly for the Units and link this new pay category to a penalty loading that matches your usual penalty rates.
- Click the Save button.
- Log into your Employment Hero payroll classic platform.
- Click the Reports menu.
- Click the Pay Categories Report button.
- Select the Date Range for the dates the employee need backpaying.
- Select the employee's standard pay category, and the employee name.
- Click the Run report button.
Helpful Hint
Note the number of paid hours, and the difference between the employee's previous rate and the new rate that they will be paid.
- Log into your Employment Hero payroll classic platform.
- Click the Pay Runs menu.
- Open the required pay run.
- Select the employee that needs back-paying
- Click the Actions button.
- Click the Add Lump Sum Payment button.
- Select the Back Payment pay category you created in the previous steps.
- Enter the total number of hours to backpay and the difference between their old pay rate and new pay rate.
- Click the Save button.
Helpful Hint
Your next pay run will now include the back payment owed to the employee.
Watch the training video
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