Retroactive Pay Rules

Occasionally, an employee's pay must be adjusted after the employee's payment has been disbursed. For example, if an employee was supposed to receive a pay increase on the first day of the month but the increase was not entered into the system until the middle of the month, then you might want to create a payment to compensate the employee for the amount of the increase from the date on which it should have been effective. This type of pay is called retroactive pay.

You can use retroactive pay rules to calculate retroactive pay amounts based on current and historical time entry information. To do so, you first define the retroactive pay calculation. After you have defined the calculation, you identify the employees for which the retroactive pay rule should apply, as well as the time period that contains the timecards that you need to adjust. When you process the retroactive pay rules, the system creates timecards and uses the pay type that you specify when you create the rule. You can then use reports and online reviews in the Timecard Automation module to review the new timecards and the timecards from which the retroactive pay originated.