Purpose
The Retro Active Adjustment module provides the capability to recalculate previously posted payroll simulations when there is a retroactive update to an employee’s pay rate details. This ensures that payroll records accurately reflect the updated rate for the applicable cut-off periods.
Overview
This feature enables authorized users to:
Recompute posted payroll simulations based on new pay rate information.
View a detailed comparison between original and recalculated payroll amounts.
Apply and save adjustments directly to the payroll simulation for accurate payroll processing.
Functionality:
To initiate a recalculation, the user must provide:
Employee and Payroll Cut-off period range
Company
Employee ID/Name
Cut-off Period(s) (FROM and TO)
New Payroll Settings (same as the Employee Information’s Payroll Settings line item):
Rate Type
Effective Date
Amount
COLA Amount
Days Considered Paid
Daily Working Hours
Pay Multiplier
System Output
Upon executing the recalculation:
The system will automatically recompute payroll for the selected cut-off periods using the new rate details.
The recalculated page will display:
Original payroll simulation values
Recalculated payroll simulation values
Variance between the two computations
Users may add or delete retro adjustments as required.
Saving Adjustments
Once the recalculation is reviewed and confirmed:
The user saves the recalculated amounts.
Adjustments are incorporated into the Payroll Simulation.
The Payroll Simulation must then be recalculated to apply the changes.
Adjustments will be tagged in the following format:
Retro Adj Basic Pay
Retro Adj OT
Retro Adj Holiday Pay
And other applicable pay components