Add a Schedule 5, Method B (ii) Lump Sum E Pay Rate

1. Click Pay Types > New Pay Rate or
2. In Description, enter Back Pay.
3. In Paid by, select Per Hour or Per Lump Sum
4. In Amount, enter either 100% or the applicable rate required.
5. In Tax Treatment, select Back Payment for a Prior Financial Year, Over $1200 (Schedule 5 – Method B (ii) – Lump Sum E)
6. If required, change the required settings in Tax and Accruals
7. Click Save then Exit.

*Method B (ii) – Lump Sum E is applicable when the Payment is more than 12 months overdue and is equal to more more than $1,200.00

Refer to the ATO’s documentation here for further guidance.