paycalc

paycalc… a tool to calculate backpay with interest

paycalc calculates the amounts of backpay including interest that are due aggrieved individuals when you supply the pay they should have earned and the pay they did in fact earn. Amounts are entered either monthly or quarterly, and interest is compounded at the IRS interest rates either monthly or quarterly. Interim earnings are subtracted out.

The interest rates used by paycalc are the rates established by the IRS (see 26 U.S.C. 6621) for calculating interest on unpaid taxes. These rates have been adopted for use in employment cases by numerous courts. EEOSTAT has the ability to download and install the latest rates through the paycalc menu.

Overview of Process: For each person in each period, enter a Name, Date, and the amount in dollars that the person would have earned in the period absent discrimination (Backpay). Enter any interim earnings (Earnings) that should be subtracted from gross backpay. Enter a title for the report, then click the Calculate button to have paycalc compute the results, reported in the Net and Interest columns and the Totals box. The results may be directed to your printer, a PDF file, Microsoft Word®, Corel WordPerfect®, or a text file.

In the example below …

EEOSTAT paycalc-exampleRobert Jones is owed backpay by ABC Retail for nine months in 2003. At the end of Februrary 2006, ABC owed Jones $4500 in net backpay plus $630.58 in interest.

❱❱ paycalc: Interest Rates

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