Understanding Retroactive Pay Calculations

The Global Payroll for Japan application provides the necessary elements for processing retroactive changes in base salary. The following list summarizes how the application processes retroactive changes:

  • The trigger for retroactive base salary processing is any change in the HR Job Data Compensation record (COMPENSATION).

    Because this record is a child of the Job Data record, changes in both the Compensation record and the Job Data record trigger retroactive processing.

  • These elements are adjusted for retroactive processing:

    • ER BASE PAYM

    • ER BASE PAYD

    • ER BASE PAYH

    • ER OVERTIME

    • ER OT ABVLMT

    • ER NIGHT

    • ER HOLIDAY

    • ER HOLNIG

    • ER TAED RED

    • ER SPLE RED

    • ER ABS RED

    • ER SCLE RED

    • SC REM S01

    • SC REM S02

    • SC REM S03

    • SC REM S04

    • SC REM S05

    • SC REM S06

    • SC REM S07

    • SC REM S08

    • SC REM S09

    • SC REM S10

    • SC REM S11

    • SC REM S12

  • Social insurance processing tracks retroactive changes when calculating monthly remuneration and when determining eligibility for occasional revision.

Note:

When you add a retroactive data row in HR records, you should place your cursor in the row of data that you want carried forward into your new row. You must manually update any existing data rows that come after your inserted row if you want your new data to be carried forward into the remaining rows of the table.

Payment Keys

Japan organizations should not use payment keys when configuring payroll for Japan.

Caution About Element Segmentation

You should not use the segmentation feature of Global Payroll. If you use segmentation, review all of your report output thoroughly for accuracy; segmentation could impact the data that is being reported.

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