Retroactive Adds
A retroactive add occurs when there is a retroactive hire or a retroactive pay group transfer. With a retroactive hire, there is no previous calculation (prior gross-to-net). In the case of a retroactive pay group transfer, the retro add refers to the pay group to which the payee is transferred.
Example 1: Retroactive Add with Forwarding Retro
Scenario:
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In period 2, information is received regarding a new payee that is hired in period 1.
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The first retro calculation involves retro in period 2 back to period 1.
| Period 1 | Period 2 |
|---|---|
|
V1R1 |
V1R1 |
|
Never existed. |
Segment 1 E1 = 200 (100 + 100) |
|
V1R2 |
|
|
Segment 1 E1 = 100 Delta = 100 |
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In period 1, V1R2 represents the retro processing for that period. The revision number is 2 even though Version 1 never existed, because the method is forwarding, and the recalculation does not represent the true results.
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The delta for period 1, V1R2 is pulled into period 2, V1R1 as an adjustment.