Retroactivity

The system generates a retroactive trigger every time you enter a change to the following data:

• Pay rate changes.

• Absences.

• Positive input.

• Earning and deduction assignments.

• Schedule assignments.

• Employee actions such as hire, termination, or transfer.

• Standard hours changes.

• Company changes.

• Department changes.

• Pay system changes.

• Pay group changes.

• Eligibility group changes.

• Holiday changes.

• Grade changes.

• Employee PHF/SI data.

Retro Method and Override Sets

For Global Payroll for China, the default retroactive method is forwarding and two delivered override sets determine how elements are forwarded when a retroactive trigger is generated:

• Retro Override Set 1: Referred to as the retro when earned override set. Using this override set, the system forwards retro earnings to the current month and calculates deductions such as tax and PHF/SI contributions based on the combined total of current earnings and retro earnings.

• Retro Override Set 2: Referred to as the retro when paid override set. Using this override set, the system creates deltas for each earning, deduction, and segment accumulator recalculated in a prior period, and forwards the deltas to the current period.

The formula CN FM RETRO determines which override set to use for a payee. It first checks for a supporting element override (SOVR) for the CN VR RETRO variable. If no SOVR exists for CN VR RETRO, CN FM RETRO uses the default override set for the payee's contribution area according to the value listed in the CN BR RETRO DFLT bracket. If a SOVR exists for CN VR RETRO, CN FM RETRO uses the overridden value to determine which override set to use.