Processing Retro Over 12 Months

Here are the processing steps:

1. Formula RTO FM SET OVRDSET—the formula specified on the Retro Process Overrides AU RETRO page—is called for each pay period identified for retro processing.

   The formula uses duration RTO DR MTH ARREARS to calculate the months between the pay date of each pay period identified for retro processing (the duration From date—system element PAYMENT DATE) and the date the retro is to be paid (the duration To date—system element CURR PRD PYMT DT).

2. If the duration is 12 months or less, the formula returns 1, and the system uses override set 1 for forwarding retro; if the duration is greater than 12 months, the formula returns 2, and the system uses override set 2 for forwarding retro.

   For each period that's more than 12 months before the retro payment date, the system forwards all the retro earnings to the single earning element RETRO12MTH.

3. The sum of the earnings forwarded to the single earning RETRO12MTH represents a lump sum E payment, and the tax calculation uses the appropriate rate on the earning.