Recalculate Payroll for Retroactive Changes

Retroactive pay is the recalculation of prior payroll results because of changes that occurred after you ran the original calculation. To process retroactive pay, run the Recalculate Payroll for Retroactive Changes process.

When a retroactive notification identifies a retroactive event for an employee, such as a change in salary, this process:

1. Performs a payroll calculation using the updated details for the employee.

2. Recalculates any employee with retroactive event notifications but only if they are part of the original payroll run set of employees.

3. Compares the results of the new payroll calculation against the results of the original payroll calculations, and creates retroactive entries for any differences.

4. Changes the status of processed notifications from Awaiting Processing to Processed.

This process never overwrites historical payroll data. Instead, it creates one or more retroactive entries to receive the process results.

For further info, see How Retroactive Pay Is Calculated in the Help Center.

Note:

Only elements that you have configured to include a retroactive event group can have retroactive element entries.

When verifying your payroll readiness, use this process to create retroactive element entries based on retroactive events. Run it immediately before starting a payroll run. If you run it after the Calculate Payroll process, it holds the retroactive adjustments until the next payroll period.

You can run this process automatically as part of your payroll flow, or you can run it manually.

To run this process, enter the following applicable parameters:

1. Click Submit a Flow.

2. Select your legislative data group.

3. Select Recalculate Payroll for Retroactive Changes.

Before You Start

Be sure to run the Retroactive Notification Report. This report identifies the retroactive changes you need to process. For further info, see Retroactive Notification Report in the Help Center.

Note:

Retroactive element entries are no different from the entries in the original payroll. They are both processed in the payroll runs and display on the UI in the same manner.

Process Parameters

Process Date

Enter the effective date of the payroll run. This date controls the start date of all retroactive entries created by the Retropay process.

For example, before running your monthly payroll for July 2021, submit retropay with a Process Date of 31-JUL-21. This creates all retroactive entries with a start date of 01-JUL-21, and the July payroll run processes them.

Note:

The date of the retroactive entries is the start date of the payroll period in which the retroactive process date falls.

If the process date of your payroll falls in the next payroll period, enter a retropay process date that falls within the current payroll period.

For example, your August payroll is paid on 05-SEPT-21. Submit retropay with a process date of 31-AUG-21 to ensure it creates retroactive with a start date of 01-AUG-21 and can be processed in the August payroll run.

Payroll

Select the payroll definition you want to run against.

Overriding Entry Create Date

Use this to control the start date of retroactive entries when you have more complex payroll period requirements.

For example, your semimonthly payroll is paid in arrears, such as:

• Period ending 15-JAN is paid on 05-FEB

• Period ending 31-JAN is paid on 20-FEB

• Period ending 15-FEB is paid on 05-MAR

Before running the semimonthly payroll for period ending 15-FEB-21, you can submit retropay with these dates:

• Retro Process Date: 20-FEB-21

  Note:

  The Retropay process date can't be earlier than the process date of the payroll run for period ending 31-JAN.

• Overriding Entry Creation Date: 15-FEB-21

  Note:

  Entries are date effective.

Process Configuration Group

Enter a process configuration group. Otherwise the process uses the default group.

Payroll Relationship Group

Enter a payroll relationship group to limit the employees included in the retroactive process. Otherwise all employees are reprocessed.

Process Results

The retroactive process:

1. Compares the run results of the original payroll run and the run results of the retroactive payroll run.

2. It looks for matching run result records across the two processes.

3. It creates one of the following:

   • Retroactive run results

   • Retroactive element entries based on these conditions.

     1. Matching run results exist in both the original run and the retroactive run creates a retroactive pay run result.

     2. Run result available in the original run but not in the retroactive run creates a retroactive pay run result.

     3. Run result in not available in the original run but a new run result exists in the retroactive run creates a retroactive pay element entry.

Note:

You might need to create some entries manually to offset entries.