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Back pay

You might owe an employee back pay to account for a wage increase, or to make up for an incorrect pay rate.

Back pay is the difference between:

  • how much the employee should have been paid over the back pay period, and

  • how much the employee was actually paid.

Lump sum E payments

If the back pay accrued, or was payable, more than 12 months before the date of payment and is $1200 or more, the ATO classify it as a lump sum E. Learn more...

Before you begin

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    Work out the back pay amount, including any overtime or allowances owed

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    Use the Payroll activity report to work out what you've actually paid the employee

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    You'll find great info about back pay on the FairWork website

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    If the employee has had a pay rise, increase the employee's salary or hourly rate

Once you've worked out the back pay amount you can include it in the employee's next pay.