Concept: Retro Differences That Require Manual Adjustments
This topic provides information on retro differences that require manual adjustments for these countries:
- Canada
- Ireland
- The UK
- The U.S.
Depending on when you enter supported retro events and process payroll, Workday can create retro results that require manual adjustments in the target pay period.
Company, Pay Group, or Tax Authority Transfers
Tax authority transfers apply to Payroll for Canada and Payroll for the U.S. only.
Payroll for Ireland supports retro pay processing for transfers between companies with the same Employer Registration Number (ERN). For company transfers with different ERNs, you need to report the employment end date on Revenue Online Services (ROS). Workday doesn't amend your journal for retro transfers. Payroll for Ireland doesn't support retro pay processing for pay group transfers.
Workday processes retro differences in the on-cycle payroll of a worker's current company, pay group, and tax authority, even when they transfer:
- After you run the retro pay calculation for supported events.
- And before you complete on-cycle payroll in the current pay period.
You can identify the resulting retro differences in the
Payroll Retro Changes that Invalidate Retro Difference(s)
report. Then, you can adjust the current payroll and process them in the correct company, pay group, or tax authority.- Example
- The current pay period is April, and Bill is in company B.He submits his time entry for March. You run and complete retro for this event. Later in April, the HR partner enters a company transfer from company A to company B, effective on March 1. Therefore the time entry applies to company A. When you run the April payroll, Workday processes the retro time entry in company B instead of company A. Once you identify the retro differences, you can adjust the payroll in both companies by reversing the payment in company B. Then, you can run an on-demand additional payment in company A.
Source Period Reversals
Payroll for Ireland doesn't support reversals.
When you have retro differences from a prior period that you reverse, and run payroll in the current pay period, Workday:
- Doesn’t reverse the retro differences.
- Processes them in the current pay period.
You can identify those retro differences in the
Reversal Results with Retro
report. Then, you can offset the payment in the current pay period.- Example
- The current pay period is April.Bill submits his time entry for March. You run and complete retro for this event. Due to errors in the March payroll, you reverse it. When you run the April payroll, Workday includes again the retro time entry for March. You can run an on-demand additional payment to offset the retro differences.
Target Period Reversals
Payroll for Ireland doesn't support reversals.
When you process retro differences in a pay period that you later reverse, Workday pays the differences in the current or a future pay period. The period Workday selects for processing can be different from the reversed pay period. You can identify the retro differences in the
Reversal Results with Retro
report. Then, you can process payment in the reversed pay period.- Example
- In March, Bill submits his time entry for February. You run and complete retro for this event, and Workday processes the differences in the March payroll.In April, due to errors in the March payroll, you reverse it, which also reverses the retro differences. You can run an on-demand additional payment to process the reversed retro differences to Bill.
PRSI Values (IRL)
When you retrospectively hire a worker, Workday calculates the worker's insurable weeks in the current period. You need to adjust the the number of insurable weeks manually.
When you retrospectively terminate a worker and process on-cycle payroll to correct the overpayment, Workday returns the correct PRSI class for the worker at the time of termination but may not report the correct PRSI subclass. You must access ROS to adjust the PRSI subclass manually.