Process a Pay Run with Back Pay

!e-PayDay® Payroll Support Personnel are not registered Taxation or BAS agents (members of the Tax Practitioners Board (TPB)) and therefore are unable to provide payroll advice. We can assist you in the use of the software in obtaining your desired outcome based on advice provided to you by your Accountant or Bookkeeper.

1. Ensure you have added a Back Pay Pay Rate
2. When composing the Employees Pay, click Line 2.
3. Select Back Pay.
4. Enter the Back Pay QTY.
   1. If Tax Treatment Back Payment, Commission, Bonus or similar payment (Schedule 5 – Method A) was selected when adding the Back Pay Pay Rate, the following alert will be displayed,
      1. Tax Adjustment. Using a Method A Pay Rate Type will apportion withholding (tax) over a defined period. Enter the number of Pay Periods to apportion withholding (tax) for this Pay Rate Type. If Cancel is clicked, tax will automatically be apportioned over ONE Pay Period. The number must be between 1 and 52
      2. Enter the number of pay periods you wish to apportion withholding (tax) over.
      3. Click Ok.
   2. If Tax Treatment Back Payment, Commission, Bonus or similar payment (Schedule 5 – Method B (i)) was selected when adding the when adding the Back Pay Pay Rate, the following alert will be displayed,
      1. Back payments apply to a specific period in the current financial year. Only the pays in the period below is used with the calculations
         1. Select the Start Date and End Date that the back payment needs to be applied to.
      2. Click Ok.
   3. If Tax Treatment Back Payment, Commission, Bonus or similar payment (Schedule 5 – Method B (iI)) or Back Payment for a Prior Financial Year, Over $1200 (Schedule 5 – Method B (ii) – Lump Sum E) was selected when adding the when adding the Back Pay Pay Rate, withholding (tax) will be automatically apportioned over the whole year (52 Weekly, 26 Fortnightly or 12 Monthly pay runs).
5. Make any other changes as necessary.
6. Click Pending or OK to save all changes.