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About Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

 
   

You are here:  Experts > People/Relationships > Retirement Planning > Accounting, Payroll & Pension Issues > back pay

Accounting, Payroll & Pension Issues - back pay


Expert: Shirley McAllister, CPP, PHR - 7/8/2009

Question
I was recently told by our human resources department that I have not been getting paid as a 12-month employee but as a 10-month employee.  I have worked here for 5 years.  Do I have the right to receive back pay for the wages that I did not receive in the previous years?

Answer
I do not believe that your wages were affected.

A 10 month or a 12 month employee usually refers to places such as schools and such that pay on contract over a period of time and you can opt to recieve 10 months or 12 months payments.

What the payroll department does is takes an annual salary amount and divides it by the number of months that you are paid.

If you are paid 10 months a year than you receive your annual salary divided by 10 each payday. If you are paid 12 months a year it is divided by 12.

So if you earned 40,000 a year and you were a 10 month employee you would be paid 10 equal segments. 40,000 divided by 10 is 4000.00 so you would be paid 4,000 dollars 10 times a year.

If you earned 40,000 a year and you were a 12 month employee you would be paid 12 equal segments 40,000 divided by 12 is 3333.33. So you would be paid 3333.33 12 times a year.

The annual salary does not change, but the number of payperiods does.

Shirley

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