This wizard is provided to suggest any back-dated pay adjustments arising from post-date changes in salary or changes of terms and conditions, which may have consequently adjusted the employee’s salary at a particular point in time.
This function eliminates the need to adjust every employee manually when post-dated salary changes are implemented.
You will be presented with two pages of information to complete:
- Requests the provision of either a payroll template (Note: only employees attached to this payroll will be considered for adjustment).
- A single employee record to review.
After selection of Next, you will be able to enter an optional cut-off date. This date can be used where back-dated pay awards before such a date have been processed without using this automated function, and the use of this function would duplicate payments already made
After providing confirmation, following selected of Finish, either the single nominated employee or all employees that are 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 systems is able to consult the amendment audit for any possible changes to any element that may affect the value of the 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 systems considers should have been paid, added to any back-dated pay awards for the same transaction from a previous pay period, to consider any adjustments to be in the current pay period.
Once an adjustment is recognised the system needs to know which payroll code to use to implement the change in the current pay period and it does this by consulting the definition of the payroll code. If a positive adjustment has been recognised, then the payroll code definition is referenced for the payroll code for positive back pay adjustments. If one is located, i.e. it is not currently empty, then this code is used to create the proposed payment, otherwise NO adjustment is proposed.
Similarly, with a negative adjustment, i.e. 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.
In order to re-create an accurate view of what should have been paid, the system acknowledges any date awareness associated with the payroll code, e.g. when an employee starts halfway through a pay period.
The standard auditing procedures will be 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 back-dated 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 allows you to review the entries created as a result of this process, by sorting and grouping the Working File enquiry by the payroll code and expanding only the designated payroll codes.
If the Use Employment History flag is set on the Payroll Parameters form, then any employees who have links between their fixed input records and their employment history records will be omitted from the back pay process.