Retroactive Pay Eligibility for Earnings

Retroactive pay is compensation you issue to a person in the current pay period due to an adjustment you made in a previous one. Because of this, you need to perform a recalculation using the Recalculate Payroll for Retroactive Changes process.

What happens when you run this process

Here's what happens when you run this process.

  1. It determines which payroll runs are affected.

  2. It recalculates them to find the changes.

  3. It brings those changes into the current period.

How you set retroactive pay eligibility for earnings

During earnings element definition, the template includes a question that identifies retroactive pay processing eligibility for the element. If you enable retroactive processing, the template:

  1. Associates the retroactive pay event with the element

  2. Generates the appropriate indirect elements

    For further info, see Indirect Elements for the US in the Help Center.