Backdated pay

If an employee has a start date in a previous pay period, or has a salary increase from a previous pay period, you will need to add backdated pay to that employee’s pay.

Before you begin

If you are using an integrated HRIS and have synced salaries, the backdated pay will be automatically calculated and added to the payslip as a gross addition.

How to add backdated pay for previous period start dates

UK Payroll can automatically calculate backdated pay for employees with start dates in a previous pay period.

Pro-rated backpay is calculated based on the Day rate method, found in Settings > Pay schedules > your chosen pay schedule.

If the day rate is set to Calendar month, UK Payroll will divide the monthly salary by the working days in the month the employee joined, then multiply it by the working days from the start date you entered to the last working day of that month.

If the day rate is set to Yearly working days, UK Payroll will divide the annual salary by the yearly working days (usually 260 days), then multiply it by the working days from the start date you entered to the last working day of that month.

1. Add the employee to UK Payroll. For more information, see Add a new hire.
2. From the left side bar, select Employees.
3. Select the relevant employee.
4. Navigate to the Salary tab.
5. Select Add salary or base rate.
6. Mark the radio button next to Add salary and click Continue.
7. Enter the Annual salary and the Salary start date.
8. Toggle on Backdate payments.
9. Click Save and continue.
10. If you would like to add a new work pattern, mark the radio button next to Yes and click Continue. To learn more about work patterns, see Set work patterns. If would like to keep the work pattern the same, mark the radio button next to No and click Save and continue.
11. Click Set salary. The backpay will be added to the payslip in the current pay period’s payroll draft.

How to add backdated pay for previous period salary increases

UK Payroll automatically calculates backpay if an employee has begun earning their salary increase in a previous pay period.

Pro-rated backpay is calculated based on the Day rate method, found in Settings > Pay schedules > your chosen pay schedule.

If the day rate is set to Calendar month, UK Payroll will calculate the monthly difference and divide this value by the working days in the month the employee’s salary increased. Then, it will multiply the resulting value by the working days from the effective date to the last working day of the month.

If the day rate is set to Yearly working days, UK Payroll will calculate the annual difference and divide this value by the yearly working days (usually 260 days). Then, it will multiply the resulting value by the working days from the effective date to the last working day of the month.

1. From the left side bar, select Employees.
2. Select the relevant employee.
3. Navigate to the Salary tab.
4. Select Add salary or base rate.
5. Mark the radio button next to Add salary and click Continue.
6. Enter the new Annual salary and the new Salary start date.
7. Toggle on Backdate payments.
8. Click Save and continue.
9. If you would like to add a new work pattern, mark the radio button next to Yes and click Continue. To learn more about work patterns, see Set work patterns. If would like to keep the work pattern the same, mark the radio button next to No and click Save and continue.