Concept: Retro Events and Terminated Workers
When you configure run categories to include workers with supported retro events and retro differences processed in payroll, you can calculate their pay after you retroactively:
- Terminate their employment.
- Rescind a termination.
- Correct a termination date.
- Enter supported events for terminated workers during or after the period that includes the termination date.
Payroll for France supports DSN reporting for retro terminations only in these cases:
- Retroactive hire followed by a retroactive termination.
- Retroactive termination in the previous month of the DSN.
- Retroactive termination followed by rehiring in the current month of the DSN.
- Retroactive termination followed by a retroactive rehiring in the same month as the retroactive termination.
What Workday Processes
When you retroactively terminate workers and run the
Retro Pay Calculation
task, Workday processes:
- Their pay results until the termination date.
- Any other supported retro events you enter for them.
Workday Payroll for Ireland recommends that you process an additional gross payment after leaving to a worker in a separate off-cycle run to ensure accurate:
- Calculation of the gross additional payment.
- Reporting to Revenue of the PRSI subclass.
Retro Termination and Insurable Weeks (IRL)
When you calculate retro payroll and then process the differences in an on-cycle payroll, Workday reports the number of insurable weeks as at the date of termination. As a result, the next payroll submission (RTR) Workday submits to Revenue may report a negative number of insurable weeks.
Retro Termination on the Last Day of the Month (FRA, IRL, UK)
Retroactively terminating a worker on the last day of the month without rehiring them can produce a retroactive result missing a target pay period. This occurs when there’s no difference retro difference in the gross pay.
For Payroll for France, to ensure accurate DSN reporting, add payroll input to create a payroll result for the current payroll period before processing retro.
For Payroll for Ireland and the UK, to report an end date for a retro terminated worker on your payroll submission, add a payroll input.
Negative Pay Periods
Workers terminated retroactively can have negative retro differences, which can result in negative net pay for the pay period. Example: Retroactively terminating employment of a salaried worker. You can resolve negative net pay manually such as by suspending the retro result or offsetting it with a memo earning.
Missing Prior Periods
You can retroactively terminate workers with an effective date in a period where they have no existing payroll results, such as when you:
- Terminate a worker's employment and rescind the termination.
- Move a retro termination date to another completed pay period.
Workday creates a zero pay result for any missing payroll periods, from the period start date to the termination date. The employee self-service
Pay
dashboard and worker profile hide payslips generated by retro termination events with zero pay results.Example
James receives a biweekly salary of 5,000 processed twice a month and prorated by calendar days. James leaves his job on July 10, but the payroll partner enters the termination on July 15. Workday already processed James's 5,000 wage.
When you run the retro pay calculation, Workday creates subperiods and generates a negative 2,000 retro difference.
Pay Period | Processing Date | Base Wages |
|---|---|---|
July 1 - July 15 | July 13 | 5,000 |
July 1 - July 9 subperiod | 5,000 / 15 * 9 = 3,000 | |
July 10 - July 15 subperiod | July 27 | 5,000 / 15 * 5 = (2,000) |