When an increase in the amount of an Allowance is backdated to a past period, it is necessary to pay the backdated increase in addition to the increased value.
The existing allowance can be used, and the Amount can be edited in Wages to pay any missed amounts.
To find out the amount that have been paid over the period of the increase run the following report:
Reports, Employee, Allowances
This report will show all allowances that have been paid and from this report you will be able to select the periods or units and multiply the difference of the correct amount.
If they were paid an allowance 15 times over a period of time for $4.50 and it should have been $4.75 the difference will be $3.75 (15 x .25c). This amount needs to be added to the new increased value on the next pay run.
When next processing the employee’s pay, click Next on the Timesheet screen. On the Adjustments - Allowances screen, select Allowances in the left and select the newly updated allowance on the right, Edit. Add the shortfall amount to the already calculated value on the screen, i.e. Wage Easy calculated the new amount of $4.50 for this pay, add the shortfall of $3.75 and enter a new Amount Payable of $8.25. OK and Save the payslip if all entries have been completed.