How do I configure the processing date for retroactive earnings and over-payment recoveries?

Use the Processing Date for Jurisdictions on Retroactive Earnings value definition to define how the payroll process performs these calculations. You can choose between the date earned and the date paid.

• Date earned

  This is the default condition, and no configuration is required.

• Date paid

  Ensures you process retroactive earnings and over-payment recoveries according to the most current jurisdictional requirements. It enhances payroll accuracy and compliance, minimizes manual corrections, and ensures regulatory integrity when employee work locations change between the dates when earnings were originally paid and the date of recovery.

  Important:

  This feature isn't intended for most organizations. Only those with a requirement to perform retroactive processing based on date paid jurisdictions should implement this feature. This change can have far-reaching impacts on taxation, costing, reporting, and compliance.

  Once you've configured this calculation value definition, don't change this setting again unless the business needs of your organization require it. A payroll record with a mix of retroactive processing types can result in audit and compliance issues and disrupt payroll integrity.

To configure the processing date:

1. Set the value definition.

   1. Start the Calculation Value Definitions task.

   2. Select your US legislative data group (LDG).

   3. Search for and select the Processing Date for Jurisdictions on Retroactive Earnings calculation value definition.

   4. In Calculation Values, click Add Row.

   5. Set the following.

      For this column	Enter this
      From Value	0
      To Value	999999999
      Value	Enter one of the following. Date Paid Date Earned

      If this row exists, update it rather than creating one.

   6. Click Submit.

2. Upgrade your elements.

   Any elements you define subsequently will use this setting. However, you must upgrade your existing elements.

   1. Start the Submit a Flow task.

   2. Select your US LDG.

   3. Search for and select Run Feature Upgrade.

   4. Enter a flow name.

   5. Select Upgrade Elements to Set the Processing Date for Jurisdictions on Retroactive Earnings.

   6. Submit the flow.

3. After processing payroll, review the retroactive results, and confirm the retroactive earnings and overpayment recoveries were processed according to your expectations.