What does OT Arrears mean on a Payslips in the UK? 30 May 2023

"OT Arrears" on a payslip in the UK refers to overtime arrears. Overtime arrears occur when an employee has worked additional hours beyond their regular working hours, and the payment for those extra hours is made at a later date. It usually arises when there is a delay in processing or calculating overtime payments. Generate or Online Payslips in UK

Here's how OT arrears may appear on a payslip:

Earnings: The payslip will include a separate line item for "OT Arrears" under the earnings section. The amount shown represents the additional payment owed to the employee for the overtime hours worked in a previous period.

Description: The payslip may provide a brief description or code indicating that the payment is related to overtime arrears. This helps in identifying the specific nature of the payment.

Tax and Deductions: Similar to other earnings, the OT arrears amount may be subject to income tax and National Insurance deductions, depending on the employee's tax code and circumstances.

Overtime arrears can occur due to various reasons, such as delays in processing timesheets, payroll processing errors, or administrative delays. Employers rectify these arrears by making a separate payment to employees for the outstanding overtime amount.

If you have any questions or concerns about the OT arrears on your payslip, it is advisable to consult your employer or the HR/payroll department for clarification and to ensure accurate understanding of your specific situation.