Add a back pay contract

You can make a subsequent payment for employees that have left employment in the current or the preceding year. For the subsequent payments, you add a contract of the Back pay contract type to the employee.

You can only make a subsequent payment if the employee has a valid contract. After the employment end, that obviously is no longer the case. That is why you add a back pay contract. An employee can have several back pay contracts, for example because subsequent payments occur in different periods.

You can only add a back pay contract to an employee if the employee's last regular contract has been terminated. The end date of that contract is before the start date of the back pay contract.

A back pay contract always refers to one complete wage period. You post the amount of the subsequent payment to a wage component using Enter wage entries.

To add a back pay contract to an employee:

1. Go to: HR / Employee / Employee.
2. Open the properties of the employee.
3. Go to the tab: General.
4. Deselect the Blocked check box.
5. Go to the tab: Contract.
6. Click on: New.
7. Enter the start date of the period for the subsequent payment in Contract start date. The period of the subsequent payment always comes after the employment end date of the employee.

   If you enter the date of the subsequent payment, Profit automatically sets it to the start date of the time frame. The end date of the contract is the end date of the same time frame. The time frame type (month, four weeks, week, etc.) is always the same as the time frame of the preceding regular contract.

8. Select Back-payment after departure for Employee type.
   Profit copies all other data from the last regular contract or leaves the relevant fields empty; you cannot change them.
9. Click on: Next.
10. In Subsequent payment type, select the table. You can choose from:
    • Groene tabel (Ontslaguitkering)

      Wages from a previous employment (for example, cantonal judge formula). That is, wage after employment has ended.

      The subsequent payment is linked to a new income relationship.

      A separate annual statement is made for the subsequent payment.

    • Witte tabel (Eindafrekening / ontslaguitkering)

      Wages from current employment (for example, wages missed out on because of the notice period of the employer). Employee leaves employment immediately, but still has to be paid for two months because of the period of notice.

      The current income relationship continues to exist.

11. Click on: Finish.

    Profit asks whether the parameters that are still active should be ended as of the employment end date. Answer Yes to this question, to make sure these parameters do not affect the wage calculation of the subsequent payment. If you answer No, you end the parameters yourself on the Wage component tab once this is required.

    Profit generates the following data:

    • Salary line

      Start and end date are the same as the start and end date of the back pay contract. Profit copies the period table from the last regular contract. The salary is set to zero.

      Profit copies the ‘BT’ annual wages from the last salary line for the employee.

    • Timetable line

      The new timetable is empty and does not contain any days or hours. The start and end date are the same as the start and end date of the back pay contract.

    • Tax authority agency line

      The start and end date are the same as the start and end date of the back pay contract.

You enter the subsequent payment as a wage entry.