paycalc

… a tool to calculate backpay with interest

paycalc calculates the amounts of backpay, including interest at IRS rates.

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 backpay calculation by the NLRB, EEOC, and 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.

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 …

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

— click image to expand

IRS Interest Rates

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 the EEOC, NLRB, and numerous courts. Since the IRS rates change every three months, you must update this paycalc file four times a year for paycalc to work properly.

You can update these rates automatically within the EEOSTAT software by selecting the menu item File / Update Rates from Web…; this will download the latest rates file into the software. Note: If EEOSTAT is installed in a Program Files directory, you need to "Run as administrator" for this to work.

Interest Rates (rates.rte) — EEOSTAT rates file; use this if you prefer to manually update the rates.
IRS Publication — The source of the latest rates.

View the complete IRS Interest Rates table below.

IRS INTEREST RATES
Start Date End Date Interest Rate
07/2020 12/2020 0.03
07/2019 06/2020 0.05
01/2019 06/2019 0.06
04/2018 12/2018 0.05
04/2016 03/2018 0.04
10/2011 03/2016 0.03
04/2011 09/2011 0.04
01/2011 03/2011 0.03
04/2009 12/2010 0.04
01/2009 03/2009 0.05
10/2008 12/2008 0.06
07/2008 09/2008 0.05
04/2008 06/2008 0.06
01/2008 03/2008 0.07
07/2006 12/2007 0.08
10/2005 06/2006 0.07
04/2005 09/2005 0.06
10/2004 03/2005 0.05
07/2004 09/2004 0.04
04/2004 06/2004 0.05
10/2003 03/2004 0.04
01/2003 09/2003 0.05
01/2002 12/2002 0.06
07/2001 12/2001 0.07
04/2001 06/2001 0.08
04/2000 03/2001 0.09
04/1999 03/2000 0.08
10/1998 03/1999 0.07
07/1998 09/1998 0.08
07/1996 06/1998 0.09
04/1996 06/1996 0.08
07/1995 03/1996 0.09
04/1995 06/1995 0.10
10/1994 03/1995 0.09
07/1994 09/1994 0.08
10/1992 06/1994 0.07
04/1992 09/1992 0.08
01/1992 03/1992 0.09
04/1991 12/1991 0.10
10/1989 03/1991 0.11
04/1989 09/1989 0.12
10/1988 03/1989 0.11
04/1988 09/1988 0.10
01/1988 03/1988 0.11
10/1987 12/1987 0.10
01/1987 09/1987 0.09
07/1986 12/1986 0.09
01/1986 06/1986 0.10
07/1985 12/1985 0.11
01/1985 06/1985 0.13
01/1984 12/1984 0.11
07/1983 12/1983 0.11
01/1983 06/1983 0.16
02/1982 12/1982 0.20
02/1980 01/1982 0.12
02/1978 01/1980 0.06
02/1976 01/1978 0.07
07/1975 01/1976 0.09
01/1972 06/1975 0.06