Retroactivity

Retroactivity is the process of going back in time and recalculating prior calendars because changes were made after the original calculation was run. When retroactive processing occurs for a payee, the system recalculates each element generated for the payee. The difference between these results is the retro delta.

In Global Payroll, there are two methods for calculating retro:

  • Corrective

  • Forwarding

Note:

In Mexico, all retro is handled with the forwarding method. This includes both the Default retro method and the On Conflict retro method.

With the forwarding method, payments are calculated in the respective periods, but balance accumulators for the period are not updated. Only the segment accumulators are updated. Deltas are created for each earning, deduction, and segment accumulator used in the process list. These deltas, which are identified on the Retro Process Overrides page, are forwarded to the current period.

The system generates a retro trigger every time you enter a change on the following data.

Changes in the Employee's Data

Changes in employee data include compensation rate-related changes:

  • Status.

  • Compensation frequency.

  • Standard hours.

  • Pay system flag.

  • Action for retroactive hire.

  • Action for retroactive termination.

Changes in Other Data

Changes in other data including absence take-related changes:

  • Positive input

  • Overtime

  • Pay group

Note:

Not all earnings or deductions will have an adjustment for retro. Some of the earnings and deductions are forwarded to one earning or deduction, which then appears as a single adjustment in the current period.

Making Retro SDI Changes in Mexico

In Global Payroll for Mexico, the Process SDI MEX calculation process generates retro triggers for all employees for changes in the SDI, such as changes in minimum wage, SDI, or seniority anniversary.

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