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Arrears
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 upto 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.
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