Manually back-paying an employee can often be tedious, complicated, and time-consuming. Employers need to identify which components of an employee’s historic pay require back payment. Then, they have to calculate the rate difference for the back pay period, compute the tax owed on the back pay, and complete several other steps.
The back pay feature automates this process, getting rid of the need to calculate manually and saving employers a significant amount of time. Note: This feature cannot be used for independent contractors.
For more information: Automating the back payment process