How do I activate the Retroactive function?
This feature is available on the Master payroll edition.
The Retroactive Functionality allows you to process backdated payroll changes. When activating a retroactive calculation on the Bulk Actions Screen, the system will automatically calculate the difference between the old and the new value of all relevant components. These differences will display on a Retroactive Payslip Record, by means of an Interim Run.
Before the Retroactive function can be activated, process a back-dated pay rate record with a past effective date on the Pay Rate Details screen.
Navigate > Employee > Payroll Processing > Pay Rate Details > History
The system will not automatically prorate the salary if the Effective Date of a pay rate record is mid-month.
To activate a retroactive calculation, update the Retro Trigger template on the Bulk Actions screen.
Download an empty MS Excel Template for the Action Type, Retro Trigger.
Navigate > Bulk Actions
Process the details of the employees who qualify for retroactive pay.
Once the spreadsheet is successfully uploaded, an interim run will be automatically created on the Payslip Pay Date screen.
Navigate > Payroll Cycle > Payslip Pay Dates
Retroactive Payslip Records will be generated to pay the backdated pay. The payslip will calculate all components that are influenced by the pay rate, and will also show the calculated amount per month in the comments.
Navigate > Employee > Payroll Processing > Edit Payslip
In light of the above example, the retroactive calculation will start with the March payslip record and apply the backdated pay rate in the Retroactive Environment. By default, all Non-Legislative Components will calculate as if it happened in March.
Once completed, the system will apply a comparison of the payslip record in the Retroactive Environment to the payslip record of March. The difference will display on the Retroactive Payslip Record. Comments will automatically generate to specify the difference calculated for each relevant month. The same process will be applied in each run between the effective date of the backdated pay rate and the current open run.
Another example would be as follows: The current Open Run is August 2024. A backdated pay rate record is processed with an Effective Date, 1 January 2024 on the Pay Rate Details Screen. The retroactive calculation will only be applied from March to June, ignoring January and February.
Payments for work done in a previous tax year should be processed in an Interim Run that is associated with February.
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