Setting Up Backpay Calculations for Salaried Employees

The system can automatically calculate and process back pay for employees on a Base Salary pay type only. It does not apply to employees paid under a Normal Time Hourly Rate arrangement.

To ensure back pay is calculated correctly, all setup must be completed before starting the pay run where the back pay will be processed.

⚠️ Important :

• Back pay is only supported for Base Salary employees

• The system calculates the difference between the old and new salary amounts

• It does not adjust for:

  • Unpaid leave

  • Manual pay adjustments

  • Overtime or other earnings variations

• Do not manually tick the Back Pay Payment Made checkbox — the system updates this automatically after processing

1. Navigate to Payroll Admin tab > Payroll Setup > Record Types

2. Scroll down to Payroll Config

3. Select List on the right-hand side

4. Click Edit on the relevant Subsidiary

5. In the General Options section:

   • Tick Calculate Back Pay for Salary

6. Click Save

For each affected employee:

1. Open the employee record

2. Go to the Salary/Wages pay component

3. Create a new salary line with:

   • Updated Base Salary annual amount

   • Start Date of the salary increase

   • Back Pay Date To (enter the applicable date)

4. Click Save

5. Ensure Back Pay Payment Made is NOT ticked

When you run your next standard pay run (not a back pay-only adjustment run):

• Navigate to Approve Payslips

• Open the employee’s payslip details

• You will see a Back Pay line item automatically generated

Once enabled and configured, the system will automatically calculate and apply back pay for eligible salary employees during the next standard payroll run.