Processing Payroll Corrections

The payroll corrections functionality of off-cycle payroll processing enables you to change finalized results for specific employee and calendar combinations due to such things as user error or missing information.

A common cause of missing information is that your company might run payroll before the end of the month to ensure that employees receive their money by the last day of the month. Because of the early payroll run information might be missing from the remaining days of the month that you need to report to Social Security, such as terminations, hires, sicknesses, and overtime.

PeopleSoft Global Payroll for Spain provides two options for reporting the missing information to Social Security in a FAN file.

  • One option is to wait until the next payroll and run retroactive processing of payroll as part of the payroll calculation for the subsequent month to correct the payroll and pay for differences. You must report this retroactive processing information in a complementary FAN file when generating the FAN file for the subsequent month. Because you are reporting the information late, Social Security charges a surcharge. PeopleSoft Global Payroll for Spain calls this running a pure retroactivity.

  • To avoid paying the accompanying surcharge for the complimentary FAN file report, you can use off-cycle processing to make payroll corrections for the affected payroll. You can run a correction in one of two ways:

    • Run off-cycle processing to make payroll corrections for the affected payroll so that you can report the information to Social Security using the latest payroll run.

      This is called correcting a payroll. By running the payroll correction before the subsequent payroll run, you can avoid generating a complimentary FAN file and its accompanying surcharge.

    • Run a special run type CORRECCION to produce the same effect.

Note:

Technically, a payroll correction is a retro calculation in which the system behavior is changed to deliver Social Security and tax data in a different way using PeopleSoft Global Payroll for Spain elements.

This topic discusses:

  • Corrections using the CORRECCION. run type.

  • Corrrections using Global Payroll Core off-cycle functionality.

  • Setup variables for corrections.

  • Additional correction scenarios.