Global Uptake: Uptake of Retroactive Overpayment and Recovery for Supplemental and Timecard Earnings Elements

You can now control how the application handles Retropay results for timecard. This is particularly important when the results reduce an employee's net pay. Rather than the overpayment automatically processing in full as a deduction to the employee's pay, it can be offset over multiple periods resulting in a lesser impact to the employee's pay. You can setup and track repayments by the employee until paid back in full, using the Recoveries calculation card. 

 This feature was initially introduced in 25D for Standard Earnings elements and is now extended to include Supplemental Earnings elements and Timecard elements. 

For information on the Overpayment Recovery report, please refer to the topic How do I use the Overpayment Recovery report to manage retroactive recoveries that I have identified?

Use Retroactive Overpayment and Recovery for elements for more control over how Retropay results are handled, particularly when the results reduce an employee's net pay. Instead of automatically recovering the full overpayment in a single payroll run, the application allows recovery only for retroactive overpayments and supports repayment across multiple payrolls in configurable installments, providing a more manageable recovery process for employees.

Steps to enable and configure

You need to set the payroll action parameter Overpayment Recovery Process Enabling the Overpayment Recovery Process to Y (Default: N).

To change the payroll action parameter to Y:

  1. Navigate to Payroll Process Configuration.
  2. Search for Overpayment Recovery Process Enabling the Over payment for Recovery Process. Default:N.
  3. Set parameter default value to Y.

The prerequisite Human Resources legislation setup steps (described in How do I set up Retroactive Overpayment and Recovery for Earnings Elements?) aren’t required for Mexico as they’re already delivered.

Tips and considerations

You need to create new elements to use this feature. This feature isn't available for existing elements.

For more information on the introduction of the feature in Update 25D, see the Payroll What’s New: Global Uptake: Uptake of Retroactive Overpayment and Recovery for Earnings Elements.

Key resources

Refer to these documents for additional information.

  • Administering Payroll for Mexico
  • Update 26A Payroll What’s New: Global Uptake: Uptake of Retroactive Overpayment and Recovery for Earnings Elements