Back-dated raise for an employee.
Correcting a payroll error.
Generate Retroactive Pay
Earnings for the selected Earning Codes within the time-period are found.
Retro-pay earning amounts are calculated for each of those earnings.
Finally, the retro-pay earnings are added to the selected employees.
Generating retroactive pay will add additional earnings to selected employees from the past earnings.
Important Generate Retroactive Pay cannot be used to add new earnings, it can only create retro-pay earnings from existing earnings. |
Open
Canadian Payroll > Payroll Data Entry > Generate Retroactive Pay.The Generate Retroactive Pay settings are contained in four tabs—Retro Definition, Selection, Earning Codes, and Retro Calculation Method.
Retro Definition
The Retro Definition tab, controls the time-period retro-pay will be generated for, the Earning Code to use for recording retro-pay earnings, and which Pay Groups to include for processing retro-pay.
Open the
Retro Definitiontab.From the
Apply Retro Pay Fromfields enter the retro-pay time-period.Tip:Press the
, and 
buttons to move the time-period forwards or backwards.Select the
Retro Earning CodeFrom the
Pay Group Selectionenable eachPay Groupto process with this retro-pay.
- Apply Retro Pay From
Only earnings within the selected time-period will be processed for retro-pay.
- Retro Earning Code
Any retro-pay earnings which are generated will be added using this Earning Code.
Selections
From the Selections tab the enabled Pay Groups can be filtered by enabling selections. When a selection is enabled (Selected) only employees matching that selection will be included for retro-active processing.
Note:
|
Tip: To generated retro-pay for a single employee the Employee selection should be used. |
Open the
Selectionstab.Enable the
Employeeselection, and select the employee to retro-pay from the drop-down to the right.
Selections:Employee A single employee can be selected from the Pay Group by enabling Selected for the Employee selection and choosing the employee from the drop-down. Union, Grid Code, Position, Locations Each of these selections can be used to select only employees with specific codes on their Employee Profile. Include The Include selection controls whether earnings are included for all Pay Groups an employee has been a member of, or only the current Pay Group (for example, if the employee changed Pay Groups during the retro-pay period.
Earning Codes
The Earning Codes tab controls which Earning Codes to include when processing retro-pay.
Note: Only codes that are enabled on the Earning Codes tab and have earnings within the time-period of the retro-pay will generate retro-pay earnings. |
Open the
Earning Codestab.Include Regular Earnings for retro-pay processing by enabling the Regular Earnings Earning Code now.
Tip:Press the
button to select all Earning Codes.
Retro Calculation Method
The Retro Calculation Method tab controls how to the retro-pay is calculated for each enabled Earning Code using a Pay Method. Pay Methods must include a Pay Basis and a Value for the Pay Basis, together which are used to calculate the retro-pay amount.
Now a Pay Method will be setup to generate the $2.00 per hour retro-pay for the selected employee’s Regular Earnings.
Add a
Pay Methodby selectingRegular Earningsthen pressingModify.
(The Pay Method settings will open in a new window.)
From the
Pay Basisdrop-down selectHours.Enter
2.00in theValuefield.Close the Pay Method window by pressing
OK.
Tip:EnableApply as Default to all Earning Codesto use the current Pay Method settings for all selected Earning Codes.Pay BasisHours, Days, Weeks, Months, Years, Period Retro-pay the entered rate per Hours, Days… Units Retro-pay the entered number of earning units. Percent Retro-pay the entered percent of the employee’s basic rate for the earning code. EI Earnings and Hours:Pay Basis will not affect the insurable EI hours because retro-pay only increases the rate for the time already worked. However, EI Earnings will be effected if the retro-pay Earning Code is setup to accumulate EI Earnings.
Generate Retro-Pay
Caution Generating retro-pay should only be done after properly setting up retro-pay processing in the Retro Definition, Selections, Earning Codes, and Retro Calculation Method tabs. |
Retro-pay is generated by pressing Generate at the bottom of the Generate Retroactive Pay window.
Press
Generate.
(This will open a confirmation message for generating retroactive pay.)
Generate retro-pay by pressing
Yesin the confirmation message.
Processing
After confirming, the retro-pay processing will begin, and the results will be displayed in the status window. Once processing has completed, a batch can be created for the generated retro-pay.
Press
Continue.
(This will open another confirmation message for creating the retro-pay batches).
Generate batches for the retro-pay by pressing
Yeson the confirmation message.Once the batch has been generated, a message will open showing the batch number.
Press
OKto close the message.Tip:The status window contents can be printed using the Print button at this time.Close and exit the Generate Retroactive Pay window by pressing
Exitnow.
Next Steps
Process a pay run with the generated retro-pay batch.
FAQ
“No data found to generate batches” message when generating retro-pay
Double-check that the
Pay Groupselections from theRetro Definitiontab are correct. (If using the Employee selection, ensure that the selected employee is a member of a selected Pay Group).“Earning code not exempt for EI Earnings.” message after selecting Retro Earning Code
The selected retro-pay
Earning Codewill accumulateEI Earningsfor all retro-pay. (If this is not correct, EI Earning can be exempted on the retro-pay Earning Code (Canadian Payroll > Employer Payroll Tables > Earnings Codes, Open the Earning Data tab and enable theEI Earning Exemption).