Concept: Retro Hire
For workers that meet the processing criteria on the run category, you can run the
Retro Pay Calculation
task to recalculate their pay after you retroactively:
- Hire or rehire them.
- Correct their hire date.
- Correct their location as part of theHirebusiness process.
What Workday Processes
When you retroactively hire workers, Workday processes pay results for them starting from their hire date. For midperiod hires, Workday creates subperiods, and prorates the pay component amounts when you configure it.
When calculating results for a retro hire, Workday also processes:
- Any other supported retro events. Examples: Retro time entry, time off.
- Unsupported retro events that have the same effective date as the retro hire. Example: Company assignments.
For Payroll for the UK, for National Insurance (NI) amounts, Workday:
- Calculates NI in the pay period when earned, not when paid.
- Uses the rates and thresholds of the current period.
- Uses the latest NI category. Example: The worker's category changes between their retro hire date and the current payroll processing date.
For Payroll for Ireland, Workday calculates the worker's insurable weeks in the current period. You need to adjust the the number of insurable weeks manually.
For Payroll for Australia PAYG amounts:
- If the retro hire happened in a previous tax year, Workday calculates the PAYG amount using Method B(ii). The superannuation is calculated using the rate as of the payment date of the retro hire period
- If the retro hire happened in the current tax year, Workday calculates the PAYG amount using the regular calculation.
For Payroll for France and the UK, Workday doesn't process terminations or the end of additional jobs as part of a retro hire.
Missing Prior Periods
During a retro pay calculation, Workday calculates the difference between original payroll results and recalculated results. However, in many cases workers hired retroactively don't have any on-cycle payroll results for the prior period. For these workers, Workday creates a zero pay result for any missing payroll periods, starting from the hire date.
The employee self-service
Pay
dashboard and worker profile hide payslips generated by retro hire events with zero pay results.Hires Skipped in Pay Calculations
On-cycle payroll calculations can skip hires because the hire period either:
- Has no existing pay or retro pay results. Example: You hire a worker and assign them to a nonpaying pay group.
- Has pay results that don't account for the hires. Example: You cancel the results, or don't recalculate them after the hire is complete.
- Has run category criteria that exclude the hires. Example: You configure your run category to ignore any hires after the 20th of each month.
When the hire effective date is in the most recent period recalculated in retro, Workday processes it as a retro hire. Workday recommends that the first time you run retro for a new period, you do so by calculation statuses. This practice helps ensure that retro considers all those hires. If you find that the calculation missed some workers, you can select them by running retro by workers.
Example: In June, you enter a hire for Paul with a start date in July. Due to missing documents, you assign Paul to a nonpaying pay group in July. When you run the July payroll, Workday skips the hire. In August, Paul submits all his documents, so you move him to a regular pay group from his original hire date in July. When you run retro, Workday processes a retro hire for him effective in July.