How To Calculate Retro Pay
How To Calculate Retro Pay . To determine how much income tax to deduct from bonuses or retroactive pay increases, take the total remuneration for the year (including the bonus or increase) and subtract the following amounts: You can do this by reviewing their previous pay stubs or reading their. Calculating Retroactive Pay from www.exponenthr.com To determine retro pay for an hourly employee, you’ll need to know how many hours were paid at the wrong rate so you can determine the rate you need to pay to correct. Here are some simple steps to help guide you on how to calculate and distribute retro pay correctly: The employee has to be paid usd 50.