Use this wizard to suggest any backdated pay adjustments that arise from post-dated changes in salary or changes of terms and conditions that may have consequently adjusted the employee’s salary at a particular point in time.This wizard eliminates the need to adjust every employee manually when post-dated salary changes are implemented.
The wizard has two pages.
The first page requests you to select either a template (only employees attached to this payroll are considered for adjustment) or a single employee record to review.
After you select Next, you can specify a cut-off date, which is optional. This date can be used where backdated pay awards before such a date have already been processed without using this automated function, and the use of this function would duplicate payments already made.
After you click Finish and provide confirmation, either the single employee or all employees associated with the selected payroll template are reviewed for potential differences between what was paid in previous pay periods and what should have been paid.
The system is able to consult the amendment audit for any possible changes to any element that can affect the value of an employee’s salary at any given point in time. It then subsequently reviews any payroll codes that are influenced by the value of the annual salary and consults the payroll history to examine any payments, or potentially deductions, made in the required time frame. Each transaction is compared against what the system considers should have been paid, added to any backdated pay awards for the same transaction from a previous pay period, to consider any adjustments to be made in the current pay period.
After adjustment is recognized, the system needs to know which payroll code to use to implement the change in the current pay period. It does this by consulting the definition of the payroll code. If a positive adjustment is recognized, the payroll code definition is referenced for the payroll code for positive back pay adjustments. If one is located — that is, it is not currently empty, this code is used to create the proposed payment. Otherwise, no adjustment is proposed. Similarly, with a negative adjustment, that is, the negative back pay code is located and if present a deduction is proposed for the current pay period.
Each time a positive or negative adjustment is successfully created, this is referenced back to the original transaction for potential use in future back pay processes.
To recreate an accurate view of what should have been paid, the system acknowledges any date awareness associated with the payroll code, such as when an employee starts half way though a pay period.
The standard auditing procedures are fulfilled as if each successfully created amendment had been created manually. A specific audit report is not produced as a result of this process, but it is recommended that the payroll codes used to process backdated pay adjustments, such as BPP (Back Pay Payment) or BPD (Back Pay Deduction), should be dedicated to this function only and not used for any other manual payments or deductions. This enables you to review the entries created as a result of this process by sorting or grouping the working file enquiry by the payroll code and expanding only the designated payroll codes.