Posted on Dec 12, 2013
SSG Robert Burns
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I may be getting promoted to SFC with a date of rank in 2008.  Anyone have any idea how the back pay is calculated?  Is it off the pay scales from the subsequent years or off the current pay scale?
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SGT Bn S1 Hr Sgt
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It will be off of what the pay would have been each year if you had been actually promoted
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CSM Mike Maynard
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Backpay is calculated at the pay rate effective for that year/month of accrual.
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SFC James Baber
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I guess my 1st question would be why the almost 6 year delay in promotion and then it would probably help explain the adjusted proper back pay.
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SSG Robert Burns
SSG Robert Burns
8 y
<p>I successfully appealed an NCOER from that rating period.&nbsp; They will do a STAB for me and reconsider me for that year and every subsequent year.</p><p>&nbsp;</p>
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SFC James Baber
SFC James Baber
8 y
Then most likely they will go with what the then current rate would have been and each subsequent yearly pay raise you would have been entitled to and 2 year jump depending on where you fall on that scale as well. No matter what you are looking at a big chunk of change, bad thing is you may or may not need to contact the IRS for possible redo's on those tax years, that is the tricky part. Good luck and congratulations.
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1SG First Sergeant
1SG (Join to see)
8 y
The IRS only cares about WHEN you get paid not what time period it refers to. Look at it like a form of reimbursement, which will apply to the year in which you receive it. 
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SFC James Baber
SFC James Baber
8 y
Actually SFC R, you are thinking of bonuses and other pay, some back pays or retro pays can be taxed or back charged for what the tax bracket may have been at the time the extra pay would've been counted, I am speaking from experience, had it happen in 1992/93 due to clerical error at DFAS on my promotion pay during Desert Storm, so it does happen, that is why I told him to double check to avoid the penalties later on. It is better to ask first to be safe and not have them come back and audit him for the last ten years if they so desire to do. 
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