Retro Pay (OLD)
The Retrospective Pay Report will calculate % changes for any back pays from earning history, and display a detailed or summary report. This is ideal for estimating the value of back pay for a group of employees.
Prerequisites
- Ensure that Hours Type Code or Allowance/Deduction codes are setup for the payment of the Retro Pay.
- Consider the following:
- How Retro Pay is taxed
- If the code may commonly be used for other purposes in the Payrun
- How the amount will be reported on the Payment Summary
Rules and Guidelines
- This process does not alter employee's base pay rates or affect Salary Packages.
- An employee could receive more than one retrospective pay in a Payrun if:
- Employees are selected for multiple Retro Rule IDs that are processed;
- There are Normal hours or overtime hours that are subject to superannuation being calculated;
- Portions of the retrospective pay are to be assigned to different payout Hours Types or Allowance Codes;
- Different Percentages to be paid apply to different Hours Types or Allowance Codes;
- Different Retrospective percentages apply to different pay period ranges;
- A portion of the retrospective pay relates to a previous financial year.
Retro Pay Steps
- Setup Back Pay Rules.
- Select the employees to be included in the calculation of Retrospective Pays - Employee Selection.
- Review the selected employees and rules applied - Review Employees.
- Calculate the retro pay based on the employees selected and the rules applied - Calculate Back Pay.
- Review the calculations - Review Back Pay.
- Process the Retro pay calculated figures and post the transaction to the next Payrun - Process to Payrun.
- Steps 2 to 5 can be done as many times as required.
- The whole process can be cancelled/postponed at any time up until it is processed to a Payrun.
- To cancel the entire process, delete the Retro Pay ID from the Back Pay Rules window.