This article is for users wanting to calculate and pay a missed pay rise for a past pay period in Wagemaster.
To Calculate The Amount Of The Back Pay
- Calculate the percentage of the increase to calculate the amount of back pay that is owed to the employee.
- Divide the new pay rate by the old and then multiply this by 100 to get the increase as a percentage.
If Anna is currently paid $10.50 per hour and the new rate is $11.75, the calculation will be:
Therefore, Anna’s rate has increased by 111.9%. (To check this calculation $10.50 x 111.9% = $11.75).
- Generally, all pay rates (full-time, Saturday, Sunday, overtime etc.) will increase by this percentage, as in most cases every pay rate is relative to the full-time weekday pay rate.
- You may wish to take 2-4 common rates and check them to ensure you come up with the same percentage. You will sometimes find that each pay rate increases by a different percentage.
- Look at the gross over the pay weeks since the pay rise was approved. To do this click, Reports > Employee > Payment Summary, or Reports > Payment Summary, selecting the required dates, for all employees.
- Once you know the total gross, multiply this by the percentage rate of the increase to give you the amount of the back pay.
If the back pay is a large amount, use the Lump Sum Payment Wizard via Adjustments. Choose Lump Sum and Add. Follow the prompts in each screen of the wizard.
Process Back Pay