Retroactive Pay - An Overview

Retroactive pay, also referred to as retropay, is the recalculation of prior payroll results when changes effective in prior payrolls are updated after the original payroll calculation.

For example, when time cards are submitted after the cutoff, or an employee receives a performance bonus for a past pay period.

Use the Recalculate Payroll for Retroactive Changes process (retropay process) to calculate retroactive pay changes.

When you run the retropay process, it recalculates the employees' previous payroll periods, based on the unprocessed notifications raised. 

It's important to decide when to enable an element for retropay. When you create your elements using the element template, enable the element to be subject to retroactive changes and select the retro event group. The retropay process includes these enabled elements in its calculations.

Retroactive Pay Process Tasks :

Task Name	Flow Pattern	Description
Run Retroactive Notifications Report	RETROACTIVE_NOTIFICATION_REPORT	Submit this report to view notifications for retroactive payroll events and the details of the changes that caused the events. This report highlights the notifications that are outstanding and will be processed by the retroactive pay process.
Recalculate Payroll for Retroactive Changes	RETROACTIVE_PAY	Submit this process to calculate retrospective changes that weren't included in the original payroll run. This is the key retroactive pay process that compares prior payroll periods and creates the retroactive entries. You can run with a payroll relationship group to restrict who's processed in this task. Otherwise, the process runs for all.
Recalculate Payroll for Retroactive Changes	Evaluate Late Hires	Submit this process to automatically evaluate late hires, create a net pay result, and create retro event notifications. This lets the late hires to be processed within the Recalculate Payroll for Retroactive Changes process. This flow pattern contains two tasks, Calculate Payroll for Late Hire and Late Hire Retropay Notification. These tasks replace the need to manually enter an element entry against the late hire, as the Late Hire Retropay Notification task automatically creates the notification.
Recalculate Payroll for Retroactive Changes Single Employee	RECALCULATE_PAYROLL_FOR_RETROACTIVE_CHANGES_SINGLE_EMPLOYEE	Submit this process to calculate retrospective changes that weren't included in the original payroll run for a single employee. This performs the same calculations as the Recalculate Payroll for Retroactive Changes process but for a single employee.
Run Retroactive Entries Report	RETROACTIVE_ENTRIES_REPORT	Submit this report to view retroactive entries details and the corresponding original calculation results that were compared to trigger the retroactive entry. This report highlights the retroactive entries created by the retroactive process. It also identifies the creator type of Retroactive Pay Element Entry or Retroactive Pay Run Result.
Run Calculate Payroll	Missing Flow Pattern System Name	Submit this process to calculate your payroll.
Calculate Retroactive Costing	RETRO_COSTING	Submit a process to recalculate costs for retroactive changes to costing setups.