… 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 printed or saved.
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|