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.

See Also

Setting Up Retroactive Benefits and Deductions

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 PeopleSoft Payroll for North America. Payroll for North America processes are used to calculate retroactive benefits and deductions and to 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:

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

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.

See Also

Setting Up Retroactive Benefits and Deductions

Page Used to Trigger Mass Retroactive Benefit/Deduction Requests

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

Use the Process Mass Retro Deductions 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.

See Also

Setting Up Retroactive Benefits and Deductions

Running the Mass Retro Request Process

Access the Process Mass Retro Deductions page (Payroll for North America, Retroactive Payroll, Retro Benefits/Deductions, Process and Review Requests, Process Mass Retro Deductions, Process Mass Retro Deductions).

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 will 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.

See Also

Reviewing and Updating Calculated Retroactive Benefits and Deductions

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

Viewing Retroactive Requests

Access the Retro Ben/Ded Request Summary page (Payroll for North America, Retroactive Payroll, Change Status/Review Info, Retro Ben/Ded Request Summary, Retro Ben/Ded Request Summary).

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 against which the request is validated. 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 Ded Sequence Number (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.

See Also

Setting Up Retroactive Benefits and Deductions

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

Running the Retroactive Benefits and Deductions Process

Access the Retro Ben/Ded Calculation page (Payroll for North America, Retroactive Payroll, Retro Benefits/Deductions, Process and Review Requests, Calculate Retroactive Ben/Deds, Calculate Retroactive Ben/Deds).

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, set up multiple run controls for each, and then run the process several times.

Viewing Error Messages

Access the Retro Benefit/Ded Messages page (Payroll for North America, Retroactive Payroll, Retro Benefits/Deductions, Process and Review Requests, Retro Benefit/Ded Messages, Retro Benefit/Ded Messages).

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

Reviewing Calculation Details and Overriding Deduction Totals

Access the Update Retro Ded Calc Results page (Payroll for North America, Retroactive Payroll, Retro Benefits/Deductions, Process and Review Requests, Update Retro Ded Calc Results, Update Retro Ded Calc Results).

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 Number (page number), Line Number (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 that are 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 deselected.
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

Running the Payroll Load Process

Access the Load Retro Deds to Paysheets page (Payroll for North America, Retroactive Payroll, Retro Benefits/Deductions, Process and Review Requests, Load Retro Deds to Paysheets, Load Retro Deds to Paysheets).

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 employees receive. 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-cycle 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.

See Also

Setting Up Retroactive Benefits and Deductions

PeopleSoft Enterprise Payroll for North America 9.1 PeopleBook

Enterprise PeopleTools PeopleBook: PeopleSoft 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 have 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.

See Also

Setting Up Retroactive Benefits and Deductions