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Generate Retroactive Pay

Retroactive pay can be used for
  • Back-dated raise for an employee.

  • Correcting a payroll error.

This document will cover the process to generate retro-pay for a $2.00/hr increase for all Regular Earnings of a single employee.

Generate Retroactive Pay

Retro-Pay Process
  • 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.

Generate Retroactive Pay cannot be used to add new earnings, it can only create retro-pay earnings from existing earnings.
  1. 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.

  1. Open the Retro Definition tab.

  2. From the Apply Retro Pay From fields enter the retro-pay time-period.

    Press the image, and image buttons to move the time-period forwards or backwards.
  3. Select the Retro Earning Code

  4. From the Pay Group Selection enable each Pay Group to process with this retro-pay.

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    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.


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.

  • Selections can be combined, and only employees matching all the selections will be processed for retro-pay.

To generated retro-pay for a single employee the Employee selection should be used.
  1. Open the Selections tab.

  2. Enable the Employee selection, and select the employee to retro-pay from the drop-down to the right.

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    EmployeeA 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, LocationsEach of these selections can be used to select only employees with specific codes on their Employee Profile.
    IncludeThe 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.

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.
  1. Open the Earning Codes tab.

  2. Include Regular Earnings for retro-pay processing by enabling the Regular Earnings Earning Code now.

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    Press the 7 4 2018 1 36 49 PM 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.

  1. Add a Pay Method by selecting Regular Earnings then pressing Modify.
    (The Pay Method settings will open in a new window.)

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  2. From the Pay Basis drop-down select Hours.

  3. Enter 2.00 in the Value field.

  4. Close the Pay Method window by pressing OK.

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    Enable Apply as Default to all Earning Codes to use the current Pay Method settings for all selected Earning Codes.

    Pay Basis
    Hours, Days, Weeks, Months, Years, PeriodRetro-pay the entered rate per Hours, Days…
    UnitsRetro-pay the entered number of earning units.
    PercentRetro-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

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.

  1. Press Generate.
    (This will open a confirmation message for generating retroactive pay.)

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  2. Generate retro-pay by pressing Yes in the confirmation message.


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.

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  1. Press Continue.
    (This will open another confirmation message for creating the retro-pay batches).

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  2. Generate batches for the retro-pay by pressing Yes on the confirmation message.

  3. Once the batch has been generated, a message will open showing the batch number.

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  4. Press OK to close the message.

    The status window contents can be printed using the Print button at this time.
  5. Close and exit the Generate Retroactive Pay window by pressing Exit now.

Next Steps

  • Process a pay run with the generated retro-pay batch.


  1. “No data found to generate batches” message when generating retro-pay

    Double-check that the Pay Group selections from the Retro Definition tab are correct. (If using the Employee selection, ensure that the selected employee is a member of a selected Pay Group).

  2. “Earning code not exempt for EI Earnings.” message after selecting Retro Earning Code

    The selected retro-pay Earning Code will accumulate EI Earnings for 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 the EI Earning Exemption).

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