Processing back pay

Synergetic can calculate back pay owed to employees from a pay rate change and include it in the next pay run. Back pay calculations use either the pay code's Rate or Amount value. See Payroll Code Maintenance - General tab.

Note: Synergetic calculates the difference between the tax the employee would have paid had they received the full payment and the tax they actually paid in the previous pay periods. The employee pays the correct amount of tax on any back pay payments.

Due to tax implications, it is not possible to assign back pay for pays in previous financial years.

Including back pay

To include back pay in the next pay run:

Select Module > Payroll > Current Pay Maintenance.
The Current Pay Maintenance window is displayed.
Select the employee you want to allocate back pay to.
Select which pay code you want to apply back pay to.
Click .
The Back Pay window is displayed.

Note: Synergetic lists all pay codes of the same type in the Back Pay window. For example, if you select NADMIN, which is a Normal pay, all of the employee's Normal pays are displayed.
Type in the Rate or Amount you want to apply.

Note: If the pay rate has been changed since these pays were processed, the new pay rate appears by default.
Select the back pay method you want to apply.
Select all the pays you want to apply back pay to.
Click .
The back pay is calculated for each selected pay line.

Note: If you want to remove back pays that were previously created, clear the Select field of the relevant pay lines.
Click .
A pay line appears in Current Pay Maintenance for each pay that a back pay has been applied to.

Note: You cannot delete the lines of back pay or edit the amounts from Current Pay Maintenance. To edit or remove back pay amounts, click to launch the Back Pay window.

The appropriate tax calculations have been made on the Summary tab to ensure the employee does not pay more tax than they need to.

Back Pay window key fields and buttons
Fields

Field

Description

Rate
Amount

The amount of back pay to be applied according to the selected Back Pay Method.

Note: If the selected pay code uses an Amount rather than a Rate, this field is labelled Amount.

Back Pay Method

Select one of the following to indicate how Synergetic should calculate the back pay:

Amount + Back Pay Amount = Entered Amount - the amount in the Rate/Amount field is the total amount for each of the selected pays.
Apply to Back Pay Amount - the amount in the Rate/Amount field is added to each of the selected pays as back pay.
Pro Rate to Back Pay Amount - the amount in the Rate/Amount field is distributed across the selected pays in proportion to the original pay.
Apply to Back Pay RATE - the amount in the Rate field is used as the pay rate for the selected pays, and the difference from the original pay is applied as back pay.

Note: If the selected pay code does not use a Rate, Apply to Back Pay RATE is not displayed.

Grid area fields

Field	Description
Select	Select to apply back pay to this line of pay.
Date	Date of the original pay.
Pay Code	Pay code of the original pay.
GL Code	GL code of the original pay.
Rate	Rate of the original pay.
Units	Units worked in the original pay.
Amount	Amount paid in the original pay.
Back Pay Rate	Back pay rate applied to the pay.
Back Pay Amount	Back pay amount applied to the pay.

Buttons

Button	Description
	Apply the Rate and Back Pay Method to the selected pay lines.
	Select all the listed pay lines.
	Deselect all the listed pay lines.
	Accept the back pay changes and close the Back Pay window.
	Close the Back Pay window and discard the changes.