Back Pay Processing

Using this process Back Payments may be made to employees where a retrospective pay adjustment has been made.

Payroll Codes

A new tab Back Pay has been added to Payroll Calculations. By default, no settings will be made. You may enter here the payment code to be used for any back dated payments and the payment code for any back dated deductions. If the payment code is blank, then no back dated payments will be made for this payroll code. Similarly, if the deduction code is blank, then no back dated deductions will be made for this payroll code.

Salary Processing

A background change has been made to all the process’s that affect an employee’s salary, such that a new table (payempbpa) is updated with the date at which such a change was affective. This will mean that the back pay process will only need to process those employees who have had changes in the required time frame.

Employment History

There is a new field in HR Record (HR Record Employment History Terms) called Back Pay – Effect From. If a date is entered here, an entry is made in the new table mentioned above, and so when the back pay process is run, the process will include this employee amongst those to be processed.

Back Pay Process

There is a new option in Payroll Functions, called Back Dated Pay Awards. The process requests either the individual employee for who back pay is to be calculated, or the template for which all relevant employees back pays are to be calculated.

This process will then look at the entries in the newly created file and for each employee it will process all payments for relevant payment and deduction codes back to the date of the entry on the table.

The process will compare the payments made to an employee within a given period to the value that is now present on the employee’s salary history file for the same period and make the necessary adjustments in the current working file.

If the effective date of salary adjustments is part of the way through the period, the system will use the Date Effective Flag on the payment code to determine the payments to be made.

If an adjustment is recognised, the payroll code definition is accessed to determine the new payroll code, via which the proposed adjustment is paid or deducted. If a payroll code of the required sign is not available, then no adjustment is instigated, E.g. if a positive adjustment is suggested but no back-dated payment code has been nominated, then no payment will be generated.