How to enter a missed pay raise for hours from prior period?

What’s the best way to enter a pay raise that was missed from a prior period? e.g. The employee was supposed to receive the increased rate for 56 hours of work. Will this affect government deductions? I need to adjust vacation pay also, how do I do this?

Asked on December 11, 2018 in Account Management.
1 Answer(s)

Hello Majida!

Thank you for posting on our QASolved Community Forum.

The easiest way to do this is to add the retroactive pay to the current paycheque. You can create an item (Salary type) in your Payroll Item List called Retroactive Pay, leaving the rate blank. This way, the item can be used for any employee when required.

In the Earnings section of the current paycheque, select the Retroactive Pay Item. Calculate the $ amount owed to the employee (for instance 56 hours @ $1.25) and record $70.00 in the Rate column. Note that since the Employee did not work additional hours, no hours are associated with Retroactive Pay.

Vacation Pay will be calculated at the rate indicated in the Employee Profile. There is a bit more manual calculation involved when paying Retroactive Pay to a salaried employee, but the procedure is the same.

Hope this helps.

Cheers!

Answered on January 5, 2019.

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