Here are some of the best practices when dealing with back pay as an HR representative: These guidelines are based on ethical business practices that promote organization and efficiency. Within human resources, there are several best practices for administering back pay and processing payment requests from employees. Best practices for back payĪny task that’s related to an employee’s compensation should be handled with care. Check to see if there are any benefits or overtime wages that need to be paid out and that you’re administering payment for the correct period of time. If your employee is owed back pay for a salary increase, be sure to fill out the appropriate paperwork to ensure that their paycheck comes from the correct budget. The components of back pay at your company will depend on how the human resources department processes payroll. Employees may also request back pay if they believe they were wrongfully terminated from their position. They can also be eligible for back pay if there was an error in the payroll that caused them to receive less money than they earned or if they worked overtime hours that were not listed on their timesheet. Sometimes, employees earn back pay after receiving a raise that took time to be processed by their company’s payroll systems. What is back pay?īut, what is back pay? Back pay is the remaining amount of money owed to an employee after they have received a paycheck.
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