Add a Back Pay 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 from the following options
   1. Back Payment, Commission, Bonus or similar payment (Schedule 5 – Method B (i))
   2. Back Payment, Commission, Bonus or similar payment (Schedule 5 – Method B (iI))
   3. 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.
8. Use this Pay Rate n a pay run by following here

*Select Method B (i) if the Payment is less than 12 months overdue and relates to the Current Financial Year
Select Method B (ii) if the Payment is than than 12 months overdue and relates to a Prior Financial Year or more than 12 months overdue and is less than $1,200.00
Select (Method B (ii) – Lump Sum E if the Payment is more than 12 months overdue and is equal to ore more than $1,200.00

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