I'm in a kind of ridiculous situation right now, but I can assure you that it is real =)
I noticed that my employer forgot to apply my last raise, which was at the end of 2019. In addition to that, my boss noticed that I should have got a raise in 2020, but also didn't.
No bad feelings here, we talked about it and I will get the money I should have got.
The thing I'm thinking about is taxes in this situation. I don't really know how the back pay will be handled, but as far as I know, I will get one big payment at the end of this year. So the raise from December 2019 for the last 24 months plus the raise from December 2020 for the last 12 months. I don't really know how much it will sum up to, but I think it will be a few thousand euro before tax.
I find taxes pretty complicated, so I don't know what would be better: to have one big payment or several smaller payments in the next months. Because, as far as I understood, you have to pay a bigger percentage in payment taxes. And the percentage will raise sharply when I have this big sum on my paycheck. My boss said it should even out, because I would have paid a larger percentage anyway if I got the raises in the last two years.
What would be the best way (in my favor of course =)) to handle this back pay? Or is there an online tool where I can calculate it myself?