Back pay settings in ZonePayroll (NZ): what’s not included by default
If you're using back pay to apply a retroactive salary uplift, there’s a catch.
The calculation doesn’t automatically include:
- Alternative holidays taken
- Public holidays
⚠️ Condition for inclusion: If Leave Rate to be paid is < the new hourly rate
If you want the uplifted rate to apply retroactively to those scenarios, you need to explicitly tell the system to do so. Otherwise, they’re excluded.
Here’s how to enable inclusion:
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Go to Payroll Config
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Select NZ settings
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Tick the box next to “Include Leave at Higher Rate in Back Pay”
This will automatically apply the new rate to leave and holidays, if applicable for all your pay runs.
Ideally set this up as you wish during the implementation process.
What if you already processed a pay run?
If the pay run hasn’t been paid yet:
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Roll back the pay run to Variable Components
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Reprocess from there
→ The system will re-calculate using the updated back pay setting
If the pay run has already been paid:
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Change the payroll config to include higher rates (as above)
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Run an adjustment pay run to account for the delta
- The system will calculate adjustment Payslips as you are used to - only creating the payslip for the delta
Reality check
Not every business wants back pay to apply to public holidays or leave paid at a premium. In some cases, excluding those is the right move – especially if they’re already complex or based on other entitlements.
But if consistency and fairness are priorities, and those higher rates should reflect the uplift too – make sure that config setting is on before you process anything.
Example 1 > Back Pay Calculation when Include Leave at Higher Rate in Back Pay is NOT applied
Example 2 > Back Pay Calculation when Include Leave at Higher Rate in Back Pay IS applied