It refers to the amount of money that an employer owes to an employee for work that was performed in the past but was not paid at the time it was due. It typically occurs when there has been a delay or error in processing wages, such as when an employee's salary increase or overtime pay was not included in their regular paycheck. Backpay can also arise from situations where an employee was underpaid or not paid at all for a certain period of time.
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How much should I pay my employee: A guide for employers
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