Global Uptake: Retroactive Overpayment and Recovery for Absence Elements

The Retro Overpayment Processing feature has been extended to support Entitlement absence elements. This feature was first introduced in Update 25D for Standard Earnings elements and extended in Update 26B to include Supplemental Earnings elements and Time Card elements.

With this enhancement, retroactive absence overpayments can be offset across multiple pay periods rather than recovered in full in a single period, reducing the impact on the employee's net pay. Repayments are tracked through the Recoveries calculation card until the overpayment is fully settled.

A new element template question, “Is this element subject to retroactive recoveries”, is now available when creating absence elements.

The options for the template question are:

• Yes
• No (Default)

The question is set to No by default. Setting the question to 'Yes' creates the elements required to generate the Recoveries card.

This image illustrates the Element creation page showing the new template question.

Element Template question: Is this element subject to retroactive recoveries?

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?.

Retroactive absence overpayments resulting from retrospective absence entries can now be recovered automatically through the Recoveries calculation card, with the recovery distributed across multiple pay periods to minimize the impact on the employee's net pay.

Steps to enable and configure

To use this feature, you must configure the payroll action parameter, Overpayment Recovery Process Enabling the Over payment for Recovery Process.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.

Note: Prerequisite steps to configure legislation for Human Resources (described in How do I set up Retroactive Overpayment and Recovery for Earnings Elements?) are not required, as they are already delivered for Canada.

Tips and considerations

• This feature only applies to new Entitlement absence elements. Existing elements are not impacted.
• Retro recovery is not supported when an absence plan is created with entitlement payment as 100% and the plan is mapped to an absence element created with the following template rules:

  Template Question	Template Question Option
  What type of absence information do you want transferred to payroll?	Qualification Absences
  How do you want to reduce earnings for employees not requiring a time card?	Select rate to determine absence deduction amount

Key resources

Refer to these documents located on the Canada Information Center (KA144) for additional information.

Administering Payroll for Canada

• CA – Payroll tab > Product Documentation > Payroll Guides > Administering Payroll for Canada

Record of Employment processing:

• CA – Payroll tab > Product Documentation > Technical Briefs > Record of Employment Processing