Multiple retro pay adjustments on the same set of time cards

Owned by Claire Aleman
Last updated: 09 29, 2023

Issue/Symptom/Question

After processing retro pay adjustments it is determined the adjusted pay rate was incorrect. Is it possible to enter the correct hourly rate and process a second set of retro pay adjustments for the same time cards on which the original adjustment was based?

How to Process retro pay adjustments?

Applies To

  • PENTA for windows
  • Payroll > Setup > Pay Groups, Payroll Classes and Workers Compensation > Payroll Classes > Standard Charging Tab
  • Payroll > Payroll Check Processing > Retroactive Pay Rate Adjustments

Resolution/Fix/Answer

Yes, PENTA allows for multiple retro active pay rate adjustments on time cards:

  • Perform a Timecard Distribution process in PENTA
  • Include approved retroactive adjustments by selecting the Retroactive Adjustments button on the timecard distribution window
  • PENTA compares the most current effective hourly rate (i.e. retro pay rate) with the pay rate the hours were previously paid at (inclusive of all prior retro adjustments). 

Note - if a second retroactive payroll adjustment is needed because an incorrect hourly rate was entered, some manual adjustment may be required due to the inability to have multiple hourly rates set up on the same effective date:

  • Payroll Classes window
  • Standard Charging Tag

  • PENTA limits one Payroll Class / Pay Rate # record for an Effective Date
  • If an incorrect hourly rate is entered for an effective date, and payroll is processed, PENTA does not allow deletion of the Effective Date pay rate. 
    • Enter a new Effective Date record dated one day greater than the incorrect pay rate record
    • Flag the new rate as Retroactive Pay = Y if this is a correction retro pay rate
  • Approve the retroactive pay rate adjustments via the Retroactive Pay Rate Adjustments window
  • Perform the Timecard Distribution process selecting the Retroactive Adjustments button on the timecard distribution window

In this example, if the pay rate entered with an Effective Date of 07/02/18 is a correction for the original retroactive pay rate entered with an Effective Date of 07/01/18, the correcting retroactive payroll adjustments will correct all timecards date 07/02/18 and after. No auto adjustments for timecards dated 07/01/18, therefore if employees worked on and were paid for work date 07/01/18 manual adjustments will be required for those hours paid at the incorrect hourly rate.