$4000 backpay that spans quite a few years, what code would this be - just Salaries and Wages?
Hi Kris
This is taxed differently so requires a new “Backpay” Payroll Item, mapped to Lump Sum E ☺️
If this is going to be the only income for the year she will be well and truly under the tax free threshold though. She’s a uni student and doesn’t work anywhere else
The tax on it isn’t related to the tax-free threshold - It’s treated differently because it spans/applies to other FYs & offsets usually apply. If it’s not categorised correctly, these won’t generate 😬
Ok thank you Shaz…….
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