Back Pay

Marlin HR enables paying back pay using an Adjustment Pay.

The method depends on whether the back pay is a missed bonus or allowance, or an underpayment over a period of time.

Missed Bonuses Or Allowances

If the back pay is a missed bonus or allowance, add it using an adjustment pay run.

To add a missed bonus or allowance:

• Perform an adjustment pay run for the relevant employees
• Add the amount against the appropriate Before Tax allowance (e.g. Bonus, Tool Allowance, Meal Allowance, Vehicle Allowance)

Underpayments

For more complex situations, such as underpaying employees over a period of time, add back pay as a separate allowance.

To add back pay for an underpayment:

• Add a Before Tax allowance called Back Pay if a suitable allowance type does not exist.
• Perform an adjustment pay run
• Enter the total before tax underpayment amount against the Back Pay allowance
• Adjust the tax amount if required
• Check all figures before finalising the pay run

Tip — Add a comment to the pay advice explaining the payment (e.g. Back Pay is for underpayment between dd/mm/yyyy and dd/mm/yyyy).