Retroactive Earnings and Recoveries Enhancement for Date Paid

We have enhanced the processing of retroactive earnings and overpayment recoveries.  You can now calculate these actions as of the date paid rather than the date earned.  This improves the accuracy of the calculations for employees that have had a change in jurisdiction between these times.

Use the new Processing Date for Jurisdictions on Retroactive Earnings value definition to configure how to process these actions at the legislative data group (LDG) level.  Setting this value to Date Paid causes the payroll process to use the employee's current jurisdiction for tax and reporting purposes.

This feature provides crucial support for organizations where employees frequently change work locations, ensuring retroactive earnings and overpayment recoveries are processed 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.

Steps to Enable and Configure

This feature is intended for organizations that require earnings and overpayment recoveries to be processed by the employee’s current jurisdiction instead of the original. Because enabling it is a significant change, confirm that it aligns with your payroll and compliance requirements.

  1. Set the value definition.
    1. From My Client Groups, click Show More.
    2. Start the Calculation Value Definitions task.
    3. Select your US legislative data group (LDG).
    4. Search for and select the Processing Date for Jurisdictions on Retroactive Earnings calculation value definition.
    5. In Calculation Values, click Add Row.
    6. Set the following.
For this column Enter this
From Value 0
To Value 999999999
Value Date Paid

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

  1. Click Submit.
  1. Upgrade your elements.
    1. From My Client Groups, click Payroll.
    2. Click Submit a Flow.
    3. Select your US LDG.
    4. Search for and select Run Feature Upgrade.
    5. Enter a flow name.
    6. Select Upgrade Elements to Set the Processing Date for Jurisdictions on Retroactive Earnings.
    7. Submit the flow.
  2. After processing payroll, review the retroactive results, and confirm the retroactive earnings and overpayment recoveries were processed according to your expectations.

Tips And Considerations

  • Before implementing this feature, test it thoroughly in a nonproduction environment, and align the results with your payroll, tax, and audit stakeholders before going live.
  • This feature is NOT 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 implemented, 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.
  • After setting this value, any retroactive-enabled earnings elements you define automatically use the new setting.
  • Make sure the value definition has only one row in the Calculation Values table. If there is already a row, update it rather than creating one.