Processing Retro Pay

This chapter provides an overview of retroactive (retro) pay processing and discusses how to:

• Define and process retro pay mass requests.

• Delete duplicate retro pay requests.

• Run and review retro pay calculations.

• Undo retro pay processing.

• Load retro pay into paysheets.

• Inquire and report on retro pay processing.

• (E&G) Generate lump-sum retroactive payments for contractual employees.

• (USF) Manage interest calculations on retro pay.

Note. Retroactive benefit processing is documented in the PeopleSoft Enterprise Human Resources PeopleBook: Manage Base Benefits.

See Also

Processing Retroactive Benefits and Deductions

PeopleTools PeopleBook: Using PeopleSoft Applications

Understanding Retro Pay Processing

This section lists prerequisites and discusses:

• Retro pay processing.

• Automatic retro pay requests.

Prerequisites

To set up retroactive pay, you must:

1. Define earnings for retro pay on the Earnings Table - General page, specifying which earnings types are eligible for retro pay and which are used to pay retro pay.

2. Define retro pay programs on the Retroactive Pay Program component (RETROPAY_PGM_TBL).

3. Assign retro pay programs to pay groups on the Pay Group Table component (PAYGROUP_TABLE).

See Also

Defining Earnings Codes and Earnings Programs

Establishing Retro Pay Programs

Setting Up Pay Groups

Retro Pay Processing

Payroll for North America automatically generates retro pay requests when you make pay-related changes to Job Data or Additional Pay records online for individual employees. Run the Retroactive Pay Mass Request process (PSPRPMSS) to trigger requests for data changes that you make for multiple employees through a Structured Query Report (SQR) process.

The system loads retro pay requests into a table, where you review them before submitting them to the Retroactive Pay Calculation COBOL SQL process (PSPRPEXT). Review and update the calculation results and rerun the calculation as many times as needed. When you’re satisfied with the calculation results, load the retro pay data into paysheets, using the Retroactive Pay Load Paysheets COBOL SQL process (PSPRPPSH).

Note. (USF) Eligibility for, and calculation of, back pay interest amounts that are associated with retro pay is handled outside of PeopleSoft Human Resource Management (PeopleSoft HRMS) for U.S. federal government customers. Once calculated, you can pay the amounts with a separate earnings code through additional pay, or by paysheet entries.

Automatic Retro Pay Requests

Retro pay requests are automatically triggered by certain data changes in Job Data or Additional Pay records. When calculated, retro pay requests do not always result in a retro pay difference.

Changing Job Data Records

Modifications to the following Job Data fields create retro pay requests when the effective date of the change is earlier than, or equal to, the pay end date of the last check paid to the employee:

• COMPRATE

• EMPL_STATUS

• SHIFT

• COMP_FREQUENCY

• STD_HOURS

• SHIFT_RT

• SHIFT_FACTOR

• EFFDT

• EFFSEQ

• FLSA_STATUS

Note. If any of these triggers affect the computation of the earnings code (not the computation of the hours associated with an earnings code), then the system processes the employees' retro pay. The Retroactive Pay Calculation process does not recalculate hours, but it recalculates the earnings associated with an earnings code.

See Increasing the Workforce.

Changing Additional Pay Data

Modifications to Additional Pay data create retro pay requests when the effective date of the change is earlier than, or equal to, the pay end date of the last check paid to the employee.

Defining and Processing Retro Pay Mass Requests

This section provides an overview of retro pay mass requests and discusses how to specify retro pay mass request criteria.

Understanding Retro Pay Mass Requests

At times, you might make retroactive payroll changes in volume, for example, in response to union contracts. To do this, create an SQR to make Job Data or Additional Pay changes. To create retro pay requests after a mass change to Job Data or Additional Pay through an SQR, you must run the Retroactive Pay Mass Request COBOL SQL process (PSPRPMSS).

Pages Used to Define and Process Retro Pay Mass Requests

Specifying Retro Pay Mass Request Criteria

Access the Retro Pay Mass Rqst Criteria page.

Retro Pay Program ID	Select the ID that identifies the earnings that this retroactive process calculates. Maintain these values in the Retroactive Pay Program table.
Start Date and End Date	The system applies the retro pay mass request to employees with effective dates in their Job records that are both: Later than, or equal to, this start date. Earlier than, or equal to, this end date. If the effective date in an employee’s Job record does not fall between these start and end dates, the system selects the latest effective date that is earlier than, or equal to, the start date.
First Hire Date and Service Date	If you specify the hire date or service date, the employees’ hire date or service date must be earlier than, or equal to, the effective dates of the data in the Selection Criteria group box. If you leave these fields blank, the system uses the end date.
Process End Date	Define the end of this retro period.
Proc. Flag (process flag)	Displays the status of the process.
Delete Request	Select this check box to reverse the mass retro request only if you have not run the Retroactive Pay Calculation process for your mass retro ID. After you select this check box, the first process that the system performs every time you run the Retro Pay Mass Request process is to delete every mass retro ID and related requests that you associated with this function. Note. This process works only if the mass requests have not been processed.
(USF) Eligible for Interest	Select if the retroactive payment is eligible for interest.

Selection Criteria

Use this group box to define the criteria that the system uses to select employees for whom to create retro pay requests.

Note. These criteria are wild cards, which means that if you leave one blank—company, for example—the system searches all companies. Use these fields to narrow the criteria to a specific company, pay group, business unit, job code, location code, and so on.

See Also

Establishing Retro Pay Programs

Deleting Duplicate Retro Pay Requests

This section provides an overview of deleting duplicate retro pay requests and discusses how to review and delete retro pay requests.

See Also

Establishing Retro Pay Programs

Understanding Deleting Duplicate Retro Pay Requests

Whether you generate retro pay requests through online changes to Job Data or Additional Pay records or in volume through the Retro Pay Mass Request process, the system places all requests in a Retro Pay Request table. If you have both online and mass retro pay requests, the system generates duplicate requests for employees who had changes from both methods. Before running the Retroactive Pay Calculation process, review the retro pay requests, and delete duplicate requests.

Note. You can’t delete a request on this page if the Proc Flag field value is Calculated. After a retro pay request is calculated, you can delete it only through the Change Retro Request Status COBOL SQL process (PSPRPUND).

Page Used to Review and Delete Retro Pay Requests

Reviewing and Deleting Retro Pay Requests

Access the Retro Pay Request Delete page.

To delete a duplicate request (or any request), select the check box to the left of the sequence number with no designation and click the Save button.

Retropay Detail

The system might also select the same employees more than once through the Retroactive Pay Mass Request process, in which case it selects the Dup check box. This happens if you set up multiple selection criteria for a retro pay mass request, and an employee satisfies more than one of the criteria. If you process the retro pay calculation with duplicate records, the system clears the OK to Pay option on paysheets for employees with duplicate records. To load the retro pay earnings into paysheets, select the OK to Pay option.

Note. You can also change the Proc Flag field for one or more retro pay requests by using the Change Retro Request Status page.

Running and Reviewing Retro Pay Calculations

This section discusses how to:

• Run the Retroactive Pay Calculation process.

• Review and update retro pay calculations.

Pages Used to Run and Review Retro Pay Calculations

Running the Retroactive Pay Calculation COBOL SQL Process (PSPRPEXT)

Access the Retroactive Pay Calculation page.

Click Run to run this request. PeopleSoft Process Scheduler runs the Retroactive Pay Calculation process at user-defined intervals.

Note. When you run the Retroactive Pay Calculation process, the system changes the Proc Flag field value of each calculated request to Calculated on the Retro Pay Request Delete page.

On-Line Process

Use this group box to calculate retro pay requests that are generated online. If you use this group box, all fields in the Mass Process and Run Mass Process group boxes become unavailable for entry.

Run On-Line Process

Use this group box to run the online process retro pay request for all employees, or for an employee ID.

Mass Process

Use this group box to calculate mass retro pay requests.

Note. You can calculate only one type of retro pay calculation at a time. If you use this group box, all fields in the On-Line Process and Run On-Line Process group boxes become unavailable for entry.

Run Mass Process

Use this group box to run the mass retro pay request for all employees, or for a mass retro request ID.

Note. After running the Retroactive Pay Calculation process, review the calculated requests of each employee and delete requests, as necessary, from further processing.

See Also

Undoing Retro Pay Processing

Reviewing and Updating Retro Pay Calculations

Deleting Duplicate Retro Pay Requests

Reviewing and Updating Retro Pay Calculations

Access the Retro Pay Calculation Results page.

Note. Except for the OK to Pay and Amount Override fields, all fields on this page are display-only.

Undoing Retro Pay Processing

This section discusses how to undo retro pay processing.

Page Used to Undo Retro Pay Processing

Undoing Retro Pay Processing

Access the Change Retro Request Status page.

Click Run to run this request. PeopleSoft Process Scheduler runs the Retro Request Status process at user-defined intervals.

Individual Retro

Mass Retro

Use this group box to undo retro processing for mass requests. If you use this group box, all other fields on this page, except those in the Undo To group box, become unavailable for entry.

On-Cycle or Off Cycle Run

Use this group box to undo processing for the retro pay requests of a pay run.

Off-Cycle Run

Use this group box to undo retro pay processing for an off-cycle pay run.

Undo To

Use this group box to indicate the new process flag value.

Important! If you unsheet a retro pay request that has been loaded into a paysheet, you cannot add the retro pay request back to a paysheet again, unless you select the Calculated option on this page.

Note. Review the results on the Retro Pay Requests Delete page.

Note. When you run the Change Retro Request Status process, paysheets are not affected in any way. If you want to completely remove the posted retro adjustment paysheets from the system, you must run the Payroll Unsheet SQR Report process (PAYUNSHT) and unsheet the complete pay run ID.

See Also

Payroll Processes

Loading Retro Pay Into Paysheets

This section provides an overview of the Retro Pay Paysheet Load COBOL SQL process (PSPRPPSH) and discusses how to run the Retro Pay Paysheet Load process.

Understanding the Retro Pay Paysheet Load COBOL SQL Process (PSPRPPSH)

To load retro pay into paysheets, run the Retro Pay Paysheet Load process. You must load on-cycle retro pay into paysheets in conjunction with the regular payroll. So, for on-cycle retro pay, run this process after you run the Create Paysheet process for the regular payroll. For off-cycle retro pay, you can run this process any time.

Page Used to Load Retro Pay Into Paysheets

Running the Retro Pay Paysheet Load COBOL SQL Process (PSPRPPSH)

Access the Retro Pay Paysheet Load page.

Click Run to run this request. PeopleSoft Process Scheduler runs the Retro Pay Paysheet Load process at user-defined intervals.

On-Cycle or Off-Cycle Run

Off-Cycle Run

Inquiring and Reporting on Retro Pay Processing

This section discusses how to:

• Generate the Retro Pay Request Summary report.

• Generate the Retro Pay Calculations report.

Pages Used to Inquire and Report on Retro Pay Processing

Generating the Retro Pay Request Summary Report

Access the Retro Pay Request Summary Rpt page.

Click Run to run the report by using PeopleSoft Process Scheduler.

Generating the Retro Pay Calculations Report

Access the Retro Pay Calculations Report page.

Click Run to run the report by using PeopleSoft Process Scheduler.

(E&G) Generating Lump-Sum Retroactive Payments for Contractual Employees

This section provides an overview of lump-sum retroactive payments and discusses how to:

• Set up lump-sum retroactive payments.

• Process additional pay for contractual employees.

Understanding Lump-Sum Retroactive Payments

At times, you might change an employee’s contract retroactively. For example, suppose that you have an employee working under a nine-month contract that is paid over a 12-month period. During the contractual period, the employee’s compensation rate is increased, and the increase is effective on the first day of the contract. In such instances, you must pay the employee retroactive earnings. With the Lump-Sum Retroactive Payment feature, you can pay the employee’s retroactive earnings as a lump sum.

To use this feature, indicate that you want a lump-sum retroactive payment for contract pay by selecting the Lump Sum Retro Payment check box on the Compensation: Contract Change Proration Option page that appears after you enter a new contract amount in the employee’s record. Then, the Contract Additional Pay SQR Report process (CNTPAY01) calculates all the lump-sum retroactive payment data. To deliver the payment in a separate check, select the Separate Check check box on the Contract Additional Pay - Run Parameters page.

The Contract Additional Pay process completes the following tasks:

• Determines what you already paid as:

  • Paid, but not earned (PNE).

  • Earned, but not paid (ENP).

  • Contract regular earnings (CRG).

• Determines what you should have paid as PNE, ENP, and CRG, had the increase (or decrease) been in effect.

• Generates lump-sum entries for each earnings code.

• Processes the lump-sum entries from an on or off-cycle payroll.

• Automatically adjusts the goal balances to reflect the increased amount.

  The goal balance of the contract additional pay represents the actual balance of the contract pay. For example, if an employee has 10,000 CAD of contract pay and 500 CAD of lump-sum retroactive pay, contract additional pay with sequence number of 1 represents the employee’s normal contract pay, and additional pay with sequence numbers greater than 1 represents the employee’s lump-sum retroactive payment. The final goal balance of the sequence 1 additional pay should be 10,000 CAD, and the goal balance of the lump-sump retroactive additional pay should be 500 CAD.

When producing a lump-sum retroactive payment for contract pay, the system:

• Processes the retroactive compensation.

• Provides a lump-sum payment of the retroactive amount to the employee.

• Tracks the effective date of the retroactive changes to the compensation amount of the contract.

• Maintains the integrity of the contract.

  This means that the contract begin and end dates, and the payment begin and end dates, do not change to accommodate the retroactive changes.

• Maintains the integrity of the assigned grade and step of the employee.

• Maintains the integrity of the true value of the contract.

The lump-sum retroactive payment for contract pay is optional. However, this capability enables you to deliver earnings to the employees in a manner that best fits your business practices and your employees’ needs.

Note. If the compensation rate is changed in Correction mode (that is, no new effective-dated row is added), no lump-sum retroactive amount is calculated.

Pages Used to Generate Lump-Sum Retroactive Payments for Contractual Employees

Setting Up Lump-Sum Retroactive Payments

Access the Compensation: Contract Change Proration Option page.

Before running the process to calculate and report on lump-sum retroactive payments for contractual employees, set up the system at the employee level.

Select the Lump Sum Retro Payment check box on the Compensation: Contract Change Proration Option page.

Processing Additional Pay for Contractual Employees

Access the Create Contract Additional Pay page.

Click Run to run this request. PeopleSoft Process Scheduler runs the Contract Additional Pay process at user-defined intervals.

Note. You can use the On-Cycle Run group box or the Off-Cycle Pay Calendar group box, but not both.

On-Cycle Run

Payroll Cycle

Lump Sum Retro Payments

Important! Run this process before you run the Create Paysheet process. This process creates additional pay records that are referenced during a payroll run.

(USF) Managing Interest Calculations on Retro Pay

This section provides an overview of interest on retro pay and discusses how to:

• Enter the current interest rate.

• Review interest calculations and interest rates.

Understanding Interest on Retro Pay

Agencies are required to pay interest on retroactive payments that are over 30 calendar days late. Payments are based on Office of Personnel Management (OPM) interest rates. Following are additional setup and processing details for managing interest calculations.

Additional Setup Steps

Follow these steps in addition to the general retro pay setup and processing steps that are documented earlier in this chapter:

• On the Earnings table, define retro earnings interest codes.

  Retro interest earnings codes have unique payment requirements. The interest that is paid to employees is classified as income with no federal, Old Age, Survivors and Disability Insurance (OASDI), or Medicare withholdings.

• Assign the retro pay interest earning code at the pay group level.

  Enter the interest earning code in the Interest field on the Pay Group Table - Calc Parameters (Pay Group table - Calculation Parameters) page.

• Enter the current interest rate, as stipulated by the OPM, on the Gvt Retro Int (government retroactive interest) page.

• When you define the retro pay mass request on the Retroactive Pay Mass Request - Retro Pay Mass Request page, select the Eligible for Interest check box.

• For retro pay requests that are not generated by the Retroactive Pay Mass Process, select the Int check box on the View/Delete Retro Pay Request page.

Interest Processing

During the Retroactive Pay Load Paysheets process, the interest is calculated on the sum of the retro payment and inserted into the paysheet using the interest earnings code that you defined for the employee's pay group.

Pages Used to Manage Interest Calculations on Retro Pay

Entering the Current Interest Rate

Access the Retro Pay Interest page.

Reviewing Interest Calculations and Interest Rates

Access the Retro Pay Interest Limit Rpt page.

Click Run to run the report by using PeopleSoft Process Scheduler.