Arrears
From Wikipedia, the free encyclopedia
Arrears, or arrearages is a legal term for the type of debt accrued after missing an expected payment. Arrears accrue from the date upon the first missed payment. The term is often used to describe being late with rent, royalties (or other contractual payments), child support, or other legal financial obligation. The word is also used to describe entitlements earned, as in a job wage or salary.
For example:
"As an employee of __________ (Company Name), you are paid one month in arrears."
When you start work on September 5th, after one month you would have accumulated a certain amount of worked hours up to October 4th. However, your salary for the worked hours during the payroll period September 5th to October 4th will not be paid to you until the start of the next payroll period i.e. October 5th to November 4th.
Therefore, your salary for:
Sep 5th - Oct 4th will be paid at the beginning of November 5th.
Oct 5th - Nov 4th will be paid at the beginning of December 5th.
Nov 5th - Dec 4th will be paid at the beginning of January 5th."
Usually Payroll will have a "cut-off" date at which your salary will be paid for the previous month's work. This is usually at the end of the month or the beginning of the next.
