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- To calculate tax on back pay, follow these steps:
- Determine the time period for which the employee is owed back pay.
- Calculate the employee's regular pay for the period in question.
- Calculate overtime pay if applicable.
- Consider other compensation and deductions1.For salaried employees:
- Identify the original and new annual salary.
- Note the number of pay periods.
- Divide the old annual salary by the number of pay periods.
- Divide the newer annual salary by the number of pay periods.
- Subtract the total.
- Multiply the difference by the number of pay periods2.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.How to do a Back Pay Calculation?
- Step 1: Determine the Time Period The first step in calculating back pay is to determine the time period for which the employee is owed back pay. ...
www.appvizer.com/magazine/hr/payroll/back-pay-c…How to calculate retroactive pay for salaried employees
- 1. Identify the employee's original annual salary and the new salary ...
- 2. Note the number of pay periods ...
www.indeed.com/career-advice/pay-salary/back-pa… - People also ask
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