Back Pay Calculation
Back Pay is a payment made retrospectively, related to the previous payment period. Back Pay is usually used to calculate salary increases or to overcome the payment calculation errors such as wage cuts based on actual working hours, salary increases, promotions, or for jobs which can be declared over because of some specific conditions. When the amount of the payment to the employees do not match the amount that should be received by the employee, then this role of the Back Pay is what will overcome these shortcomings in future payments. Back Pay is usually calculated from the date of termination to the date of the decision of the specified claims.
Wrong Back Pay Calculation can lead to problems, like it can be end up in court, so to avoid such problems, in addition to the need for company’s responsibility in the payment, HR teams in companies also need to be through in dealing with the calculation of the Back Pay salary. Back Pay calculation ownled by PayrollBozz helps companies to avoid the whole problem in the payroll and back pay calculation. PayrollBozz supports the company’s policy by reducing the employees payment in the month before the payroll run and then the rest of the payment is made simultaneously at a later date established by the company.