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Description
Back Pay functionality allows you to "recalculate" historical wages, find and pay out the difference into the current payroll period in case when pay rates (in Payscale or Personal Rates) have changed for the periods that are already closed. This is usually needed when it happens so that the unions start annual negotiation of CBA's and provide employers with the new contracts saying that these new pay rates are in effect from 2 months ago.
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Previously it was only possible to generate and pay out back pay only on employee amount, and from release v.2020.10 it is now possible to create back pay for all calculated amounts on the entry (which are 11), i.e. it is now also possible to calculate out back pay on the employer amount too.
Step-by-step guide
Setup in payroll scripts
Every entry code, that you want to pay out back pay with, requires a special payroll script setup.
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//If it is a backpay entry, then it should ignore the script and just pay out/deduct amount set in L21 (L1101), L1102...L1111
IF L11="Y" THEN //L11 is set to Y when the entry code is generated from BackPay routine
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As mentioned above, before v.2020.10 it was only possible to back pay on employee amount L61. And back pay entry contained the calculated out amount in L21 field, so the old scripts the rules for back pay were L61=L21. With the new implementation of backpay fields L1101..1111, to keep the functionality compatible with the existent customers using back pay, we still maintain the back pay employee amount in L21 field in addition to the L1101 (the new field). So, the below sample scripts would still work for the existing customers.
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Back Pay process
Back Pay process consists of 2 steps:
Generate Back Pay
Pay Out Back Pay
Step 1. Generate Back Pay.
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The routine examines the payroll history, calculates the difference between what has been paid out, and what should have been paid out for the relevant period based on the change in Personal or Payscale Rates. If Entry Code calculation rules includes reading both Personal Rates and Payscale Rates, than Personal Rates have priority and will be checked first - if no changes in amounts and they are not 0, then no back pay will be generated, even if Payscale Rates have a change.
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Note that if you've found that you've updated a pay rate wrongly, you don't need to delete the back pay entries, which have not been paid out yet, to generate a new backpay. The system will overwrite these non-paid back pay entries to generate new ones according to the updated rate. |
Step 2. Pay Out Back Pay
To process the generated back pay entries to persons current month payroll, close Payroll module window (if you forget - no worries, the system will give you a warning to close it) and go to Back Pay > Pay Out Back Pay. You will be asked if you want to continue, as soon as you agree, the system will create back pay entries in Payroll Entries screen for all crew who have back pay entries generated and not paid out yet. You will see the progress bar and receive a message as soon as this process is completed.
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You can customize the color of the back pay entries in Payroll options.
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Reports
There are several reports that you can use to get a list of Back Pay entries only.
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