Advanced Feature - Entering Retroactive Pay Raises
When entering retroactive pay raises (or any back-pay), you can integrate the pay with an existing check or create a separate paycheck, which reduces the tax withholding amount. This is useful when an employee's salary review is inadvertently delayed.
Use Other Pay Master Maintenance to set up an Other Pay Code for retroactive pay, and specify one of the miscellaneous Other Pay Types (5 or 6).
Assign the code to the appropriate employee during Employee Master Maintenance in the Other Pay Area.
Start the Payroll Run.
Enter
the retroactive pay amount during Check Entry in the Pay
Detail Area, specifying the Other Pay Code created for retroactive
pay.
Note: If
you want to process the retroactive check as a separate check, follow
the directions for entering multiple checks.
This can
reduce the tax withholding amounts.
Tip: You can optionally record pay raise information by filling in the Employee Rate History Area in Employee Master Maintenance.