Processing Retroactive Benefits and Deductions

This chapter provides an overview of retroactive benefits and deductions and discusses how to:

Trigger individual retroactive benefit/deduction requests.
Trigger mass retroactive benefit/deduction requests.
Handle duplicate requests.
View retroactive benefit/deduction requests.
Calculate retroactive benefits and deductions.
Review and update calculated retroactive benefits and deductions.
Load calculations into PeopleSoft Enterprise Payroll for North America.

Understanding Retroactive Benefits and Deductions

A retroactive change to employee or benefit-related data has an effective date prior to the last confirmed pay end date of the employee’s pay group. Retroactive changes to benefits and deductions might become necessary for a variety of reasons: late paperwork, data-entry errors, modified union contracts, and changes to employment laws, for example.

The Manage Base Benefits business process retroactive benefits and deduction features flag these events internally and create retroactive benefit/deduction requests that you can view by employee.

Triggers for individual events and mass events are defined differently. The system identifies individual events without any user intervention, while mass event processing occurs only by user request.

Note. Retroactive benefits and deductions features are available only if you also use Payroll for North America. Payroll for North America processes are used to calculate retroactive benefits and deductions and load retroactive benefit/deduction totals to payroll.

Triggering Individual Retroactive Benefit/Deduction Requests

Retroactive changes to the following pages and fields trigger PeopleCode to automatically generate an individual retroactive benefit/deduction request:

Application Component	Page	Trigger Fields
Employee Pay Data	General Deduction Data	All fields
Enroll in Benefits	Health Benefit Elections	All fields
	Life AD/D Elections	All fields
	Disability Benefit	All fields
	Vacation Benefit	All fields
	Benefit Program Participation	All fields
Job Data	Work Location	Effective Date
	Compensation	Compensation Rate Frequency Change Amount Change Percent
	Benefit Program Participation	All fields

Note. With PeopleSoft Enterprise Benefits Administration, retroactive changes can be made to the preceding pages and fields as a result of open enrollment or event maintenance. System requests for retroactive benefits and deductions are created exactly as if you had made these changes manually.

(USF) Pages That Trigger Individual Retroactive Benefit and Deduction Requests

Application Component	Page	Trigger Fields
Employee Pay Data (USF)	General Deduction Data	All fields
Enroll in Benefits	Health Benefit Elections	All fields
	FEGLI Benefits	All fields
	Benefit Program Participation	All fields
HR Processing USF	Data Control	Effective Date
	Compensation	Pay Rate Determinant Pay Basis Base Pay FEGLI Base
Current Job	Compensation	Compensation Rate Frequency Change Amount Change Percent
	Benefit Program Participation	All fields

Triggering Mass Retroactive Benefit/Deduction Requests

This section discusses how to:

Create a mass retroactive benefit/deduction program and define the request.
Run the Mass Retro Request (mass retroactive request) process.

Page Used to Trigger Mass Retroactive Benefit/Deduction Requests

Page Name	Object Name	Navigation	Usage
Retro Benefit/Ded Mass Request (retroactive benefit/deduction mass request)	RUNCTL_RTRODEDMASS	Payroll for North America, Retroactive Payroll, Benefits/Deductions, Process Mass Retro Deductions, Retro Benefit/Ded Mass Request	Generates mass retroactive benefit/deduction requests.

Creating a Mass Retroactive Benefit/Deduction Program and Defining the Request

Use the Retro Ded Mass Rqst Criteria page to set up:

A mass retroactive benefit/deduction program.
A mass retroactive benefit/deduction request with selection criteria that involve the benefit program changes.

Running the Mass Retro Request Process

Access the Retro Benefit/Ded Mass Request page.

Pay Calendar Validation

Select to validate that the selected employees are hired into a confirmed pay calendar before generating a request for them.

Clear to select employees who have been placed in a special pay group that does not yet have a confirmed pay calendar.

Handling Duplicate Requests

A request that affects the same retroactive benefit/deduction information as a previous request is considered a duplicate request.

The duplicate resolution process differs, depending upon the types of request that are involved (individual or mass) and the status of the initial request.

Individual Requests

When the system encounters duplicate individual requests with different effective dates, it attempts to use the earlier date for processing.

When a duplicate individual request is triggered and the initial individual request is not processed, the system compares the effective dates of the two requests, keeps the request with the earlier effective date, and deletes the request with the later effective date.

If the initial request is calculated, the system compares the effective dates of the two requests, marks the previously calculated request Not OK to Process, sets the status to Invalidated, sets the Duplicate Flag to Y (yes), and gives the new request the earlier of the two effective dates.

Mass Requests

For duplicate mass requests, the system checks the status of the initial request. If it is Not Processed or Calculated, the system marks both requests Not OK To Process. You’ll have to examine both requests and decide which one to run.

This process is also followed when one of the duplicate requests (either the original or the duplicate) is an individual request, while the other is a mass request.

Viewing Retroactive Benefit/Deduction Requests

This section discusses how to view retroactive requests.

You can view requests by employee, mass retroactive request ID, effective date, or process status.

Page Used to View Retroactive Benefit/Deduction Requests

Page Name	Object Name	Navigation	Usage
Retro Ben/Ded Request Summary (retroactive benefit/deduction request summary )	RETRODED_RQST_SUMM	Payroll for North America, Retroactive Payroll, Change Status/Review Info, Retro Ben/Ded Request Summary, Retro Ben/Ded Request Summary	View retroactive benefit/deduction requests by employee, mass retro request ID, effective date, or process status.

Viewing Retroactive Requests

Access the Retro Ben/Ded Request Summary (retroactive benefit/deduction request summary ) page.

Retro Effective Date (retroactive effective date) and Process End Date

Displays the date range for which retroactive benefits and deductions will be calculated.

Retro Request Type (retroactive request type)

Displays the action that generated the request. Possible types include:

Benefit Deduction

General Deduction

Job Change

Mass Request

Retro Program ID (retroactive program ID)

The retroactive benefit/deduction program that the request is validated against.

Only one retroactive program ID is defined for individual requests, which are generated online. If the employee was selected through a mass request, the mass request’s mass request ID is displayed.

Duplicate Flag

Automatically set to Y when a duplicate request is identified.

Retro Sequence # (retroactive sequence number)

A system-assigned sequence number that links retroactive benefit/deduction requests with actual retroactive benefits and deductions.

Process Flag

Indicates the processing status of the request. Values include:

Not processed: The request has been triggered but no processing has occurred.

Extracted: The request is in the middle of the calculation process.

Calculated: The request has been successfully run through the calculation process.

Loaded to Payroll:

Invalidated: The request is a duplicate individual request.

Rejected: The request cannot be processed because it contains incorrect data.

Plan Type

Appears only for requests that involve changes to general deduction and benefit plan information

Deduction Code

Appears only for requests that involve changes to general deduction information.

Benefit Plan

Appears only for benefit plan-related requests.

Calculating Retroactive Benefits and Deductions

For each pay period after the process start date through the process end date, the retroactive benefit/deduction calculation process determines:

The original benefit and deduction amounts.
The retroactive benefit and deduction amounts.

This section discusses how to:

Run the Retroactive Benefits and Deductions process.
View error messages.

Pages Used to Calculate Retroactive Benefits and Deductions

Page Name	Object Name	Navigation	Usage
Retro Ben/Ded Calculation (retroactive benefit/deduction calculation)	RUNCTL_RTRODEDCALC	Payroll for North America, Retroactive Payroll, Benefits/Deductions, Calculate Retroactive Ben/Deds, Retro Ben/Ded Calculation	Set up calculation processes for individual and mass retroactive benefit/deduction requests.
Retro Ben/Ded Proc (retroactive benefit/deduction process)	RETRODED_MESSAGES	Payroll for North America, Retroactive Payroll, Change Status/Review Info, Retro Benefit/Ded Messages, Retro Benefit/Ded Messages	View error messages for the calculation process.

Running the Retroactive Benefits and Deductions Process

Access the Retro Ben/Ded Calculation page.

Individual and Mass

Select to run an individual or a mass request. You can run all requests or a request that is associated with a specific ID.

To process several individual employees, you need to set up multiple run controls for each, and then run the process several times.

Viewing Error Messages

Access the Retro Benefit/Ded Messages page.

You can select specific sets of error messages on this page. The system prompts you to search for error messages based on aspects of the retroactive benefit/deduction requests involved. For example, you can select error messages for retroactive benefit/deduction requests that have a specific company, pay group, and pay end date combination.

Reviewing and Updating Calculated Retroactive Benefits and Deductions

This section discusses how to review calculation details and override deduction totals.

Pages Used to Review and Update Calculated Retroactive Benefits and Deductions

Page Name	Object Name	Navigation	Usage
Retro Ben/Ded Calc Results (retroactive benefit/deduction calculation results)	RETRODED_DEDS	Payroll for North America, Retroactive Payroll, Benefits/Deductions, Update Retro Ded Calc Results, Retro Ben/Ded Calc Results	Review individual line items for each pay end date and override deduction amounts.
Retro Benefit/Ded Calc Summary (retroactive benefit/deduction calculation summary)	RETRODED_SUMMARY	Payroll for North America, Retroactive Payroll, Change Status/Review Info, Retro Benefit/Ded Calc Summary, Retro Benefit/Ded Calc Summary	View summaries of calculation totals.

Reviewing Calculation Details and Overriding Deduction Totals

Access the Retro Ben/Ded Calc Results page.

Retroactive Deduction Data

Results are broken up by pay end date and then further by deduction code and deduction classification.

Use the scroll arrow to see calculations for each available combination.

Pay End Date

Derived from the employee’s actual pay history, unless none exists. This can happen if the employee is a retroactive hire, for example. In these cases, the pay end date from the appropriate pay calendar is used.

Company, Pay Group, Benefit Program, Plan Type, Benefit Plan, Coverage Code, Deduction Code, Page # (page number), Line # (line number), and Off Cycle

Populated with values from the employee’s actual pay history.

If the employee has no pay history, the data is obtained from the job row effective for the selected record’s pay end date. The page number and line number are set to zero, and the Off Cycle box is cleared.

Old Ded Amount (old deduction amount)

Shows the actual amount that was calculated in the displayed pay period for the displayed deduction code and deduction class.

New Ded Amount (new deduction amount)

Shows the amount that should have been deducted, according to the current data.

Override Ded Amount (override deduction amount)

Enter a new amount to override the value in the New Ded Amount field.

Note. For you to enter a new amount, the request must have reached Calculation status, but cannot have reached Loaded status.

Retro Ded Amount (retroactive deduction amount)

Displays the difference between the new and old deductions.

Exception

Selected for duplicate requests.

OK To Process

Selected for all requests that aren’t duplicates.

Note. Use the scroll arrow to see calculation amounts for each deduction code/deduction classification combination.

See Also

Handling Duplicate Requests

Loading Calculations into PeopleSoft Enterprise Payroll for North America

This section discusses how to:

Run the payroll load process.
Process payroll for retroactive benefits and deductions.

Page Used to Load Calculations into Payroll for North America

Page Name	Object Name	Navigation	Usage
Retro Ben/Ded Paysheet Load (retroactive benefit/deduction paysheet load)	RUNCTL_RTRODEDPSHT	Payroll for North America, Retroactive Payroll, Benefits/Deductions, Load Retro Deds to Paysheets, Retro Ben/Ded Paysheet Load	Load retroactive benefit/deduction calculations into payroll.

Running the Payroll Load Process

Access the Retro Ben/Ded Paysheet Load page.

Warning! Before loading retroactive benefits and deductions to payroll, you must run Paysheet Creation to create paysheets with normal pay for this period.

You can load employee retroactive benefit calculations by pay run ID or by company, pay group, and pay end date. You can use either method to process an off-cycle pay run; use the pay run ID method for on-cycle pay runs.

Note. Off-cycle payroll runs are generally used to handle one-time deduction refunds, and the resulting refunds are delivered on separate checks from the regular payroll checks that are received by employees. You should process off-cycle retroactive benefits and deductions in conjunction with off-cycle retroactive pay processing. When you load benefits or deductions for a particular retroactive benefit/deduction program to Payroll for North America, the on- or off-cycle selection here must match the selection for the same program on the Retroactive Benefit/Deduction Table.

Use the same pay run ID that you set up in your regular on-cycle or off-cycle pay run. The employees included under the ID must:

Have already had their retroactive benefits and deductions calculated through the Retroactive Benefit/Deduction Calculation process.
Have at least one of their calculated benefits and deductions marked OK To Process on the Retro Ben/Ded Calc page.

For the company, pay group, or pay end date method, if you leave a field empty, the system processes all appropriate values for that field during the load.

Select Process Terminated Employees to have paysheets created for employees who are receiving refunds and have been retroactively terminated.

PeopleSoft Enterprise Payroll for North America 9.0 PeopleBook

PeopleTools PeopleBook: Process Scheduler

Processing Payroll for Retroactive Benefits and Deductions

After calculations are loaded, Payroll for North America processes the retroactive benefits and deductions in the next payroll cycle. Retroactive benefits and deductions owed to the employer are collected by way of arrears processing. You can use the arrears processing pages to control how much money is deducted from employee paychecks.

For on-cycle processing, retroactive benefits that are owed to the employee are reimbursed in the next paycheck. If you’ve used off-cycle processing, refunds are delivered in a separate check.

Note. You can use the Retro Ben/Ded Review page to review the results of the Retroactive Benefit/Deduction Payroll Load process at any time after it has been run. The status of the request is Loaded to Payroll.

Retro Effective Date (retroactive effective date) and Process End Date	Displays the date range for which retroactive benefits and deductions will be calculated.
Retro Request Type (retroactive request type)	Displays the action that generated the request. Possible types include: Benefit Deduction General Deduction Job Change Mass Request
Retro Program ID (retroactive program ID)	The retroactive benefit/deduction program that the request is validated against. Only one retroactive program ID is defined for individual requests, which are generated online. If the employee was selected through a mass request, the mass request’s mass request ID is displayed.
Duplicate Flag	Automatically set to Y when a duplicate request is identified.
Retro Sequence # (retroactive sequence number)	A system-assigned sequence number that links retroactive benefit/deduction requests with actual retroactive benefits and deductions.
Process Flag	Indicates the processing status of the request. Values include: Not processed: The request has been triggered but no processing has occurred. Extracted: The request is in the middle of the calculation process. Calculated: The request has been successfully run through the calculation process. Loaded to Payroll: Invalidated: The request is a duplicate individual request. Rejected: The request cannot be processed because it contains incorrect data.
Plan Type	Appears only for requests that involve changes to general deduction and benefit plan information
Deduction Code	Appears only for requests that involve changes to general deduction information.
Benefit Plan	Appears only for benefit plan-related requests.

Retroactive Deduction Data	Results are broken up by pay end date and then further by deduction code and deduction classification. Use the scroll arrow to see calculations for each available combination.
Pay End Date	Derived from the employee’s actual pay history, unless none exists. This can happen if the employee is a retroactive hire, for example. In these cases, the pay end date from the appropriate pay calendar is used.
Company, Pay Group, Benefit Program, Plan Type, Benefit Plan, Coverage Code, Deduction Code, Page # (page number), Line # (line number), and Off Cycle	Populated with values from the employee’s actual pay history. If the employee has no pay history, the data is obtained from the job row effective for the selected record’s pay end date. The page number and line number are set to zero, and the Off Cycle box is cleared.
Old Ded Amount (old deduction amount)	Shows the actual amount that was calculated in the displayed pay period for the displayed deduction code and deduction class.
New Ded Amount (new deduction amount)	Shows the amount that should have been deducted, according to the current data.
Override Ded Amount (override deduction amount)	Enter a new amount to override the value in the New Ded Amount field. Note. For you to enter a new amount, the request must have reached Calculation status, but cannot have reached Loaded status.
Retro Ded Amount (retroactive deduction amount)	Displays the difference between the new and old deductions.
Exception	Selected for duplicate requests.
OK To Process	Selected for all requests that aren’t duplicates.