Enable retroactive overpayment and recovery

Use the retroactive overpayment and recovery for earnings elements feature to process RetroPay results that create overpayments.

Overpayments are offset and tracked as recovery balances instead of being deducted immediately from the employee's net pay. Employee repayments can then be scheduled and monitored until the recovery balance is cleared.

Configure an earnings element for retroactive recovery

When creating a new earnings element, answer Yes to the question Is this element subject to retroactive changes?

When enabled, the application automatically creates the following elements and formulas that are needed to support recovery processing:

Elements	Formulas
Element_Name_Evaluation	Element_Name Evaluation
Element_Name_Offset	Element_Name Offset
Element_Name_Recovery	Element_Name Recovery
Element_Name_Recovery Results	Element_Name Recovery Results

Configure Human Resources legislation

1. 1. Go to Setup and Maintenance > Tasks panel > Search > Configure Legislations for Human Resources.
   2. Search for your legislation and click Update.
   3. Configure the following:

      • Component Groups: Select Edit > Enable Recoveries > Save.
      • Balance Dimensions: Select Edit > Select All > Save.
      • Legislative Rules: Select Edit > Save.

Update the payroll action parameter

1. Go to My Client Groups > Show More > Payroll > Payroll Process Configuration.
2. Search for the Overpayment Recovery Process Enabling the Over payment for Recovery Process.Default:N parameter.
3. Set the default value to Y.

4. Save your changes.

You can now process retroactive overpayments and recoveries for eligible earnings elements.