Download Calculating and Paying Lump Sum Payment and Arrears (Back Pay

Calculating and Paying Lump Sum Payment and Arrears (Back Pay)
Locally paid Education Support Class (ESC) employees (that are not casual) who terminated prior to the date the
agreement was signed on July 10, 2013 are NOT eligible to be paid the Lump Sum Payment or arrears (back pay).
As set out in Schedule 1 of the Agreement, the arrears (back pay) will be calculated and backdated to 7 April, 2013 (the
commencement of the first pay period on or after 1 April, 2013).
Arrears and Lump Sum Payment Process for locally paid Education Support Class (ESC) employees (that are not
casual):
1. Determine number of hours eligible for arrears payment.
A) Calculate the hours worked 01 April, 2013 to 30 June, 2013. This falls under past year’s history.
These hours can be obtained from Past Years Employee Transaction History (PE21900)
Enter the parameters to include 01 April, 2013 in the From Pay Date field.
Enter June 30, 2013, in the To Pay Date field.
Ensure the Include Terminated Employees field is marked as N.
B) Calculate the hours worked 01 July, 2013 to 31 July, 2013. (End date of this pay rate period)
These hours can be determined from current year’s Employee Transaction History report (PE21110)
Enter the parameters to include 01 July, 2013 in the From Pay Date field.
Enter 31 July, 2013, in the To Pay Date field.
Ensure the Include Terminated Employees field is marked as N.
2. Each report displays the total hours worked for each employee.
For each relevant employee, combine each employees hours appearing on reports (PE21900 & PE21110).
This will determine the employees total hours eligible for arrears (back pay) payment to 31 July, 2013.
These hour totals are current for pay rate change effective 01 April, 2013 only.
A separate calculation and rate will apply for pay rate change effective 01 August, 2013.
3. Calculate the hours worked 01 August, 2013 to Present Date. Pay Rate changes 01 August, 2013.
These hours can be determined from current year’s Employee Transaction History report (PE21110)
Enter the parameters to include 01 August, 2013 in the From Pay Date field.
Enter present date in the To Pay Date field.
Ensure the Include Terminated Employees field is marked as N.
4. To calculate the arrears (back pay) amount to be paid follow Back Pay Calculator link below.
Do separate arrears (back pay) calculation for each pay rate period.
A)
Pay Rate effective 01/04/2013: Enter hours determined 01/04/2013 to 31/07/2013
B)
Pay Rate effective 01/08/2013: Enter hours determined 01/08/2013 to present day.
Be aware of salary classification changes during the specific time period for arrears.
If applicable this could require separate calculations.
The calculator can be found under Proformas and Worksheets on the CASES21 page of the Financial
Management website.
5. Process the Arrears (Back Pay) and Lump Sum Payment due (if applicable) in the next normal pay period.
Lump Sum Payment: Add a new line. Select Pay Item 860 ‘$1000 Lump Sum Payment 2013’
This will populate with a rate of $0.
Full time Education Support Class (ESC) employees are eligible for the $1000 Lump Sum Payment. If a staff
member is employed part time, their time fraction as at 10 July, 2013 will determine the pro-rata rate paid.
For example, an Education Support Class employee was employed 0.5FTE for Terms 1 and 2 then commenced
full time employment from the commencement of Term 3 – July 15th, 2013.
Their entitlement is $500 Lump Sum Payment since their time-fraction as at 10 July, 2013 was 0.5FTE.
Arrears / Back Pay: Add a new line for each arrears payment due in each pay rate period.
A)
Select Pay Item 861 ‘ Salary Arrears 1/4 - 31/7/2013’.
Enter (1) hour in the Hrs/Unit field
The Rate will be the total amount to be paid as lump sum (as determined from back pay calculator result)
The system will populate the Value field and update the taxation.
B)
Select Pay Item 862 ‘Salary Arrears 1/8/2013’
Enter (1) hour in the Hrs/Unit field
The Rate will be the total amount to be paid as lump sum (as determined from back pay calculator result)
The system will populate the Value field and update the taxation.
6. Once details have been entered for each employee, process the payroll and update the batch.
Casual Employees
In the case of ES casual employees (ie: those that work on an irregular and infrequent basis, not including CRT’s) the
new casual rates apply to payment for work from and including July 29, 2013. See Salary Rates page in A-Z Topic for
updated rates and further information.