Concept: Retro Time Off

The retro pay calculation reprocesses prior period earnings when a worker enters time off. Dates for this time off must be after the worker's No Retro Processing Prior To date. The recalculations include:

Earnings for paid time off.

Deductions for paid or unpaid time off where

Recalculate for Retro

is selected.

Paid or unpaid time off earnings directly affected by the change.

Earnings indirectly affected by the change. Base pay earnings are salary minus (paid + unpaid time) to avoid double paying employees for the hours they aren't working.

Paid or unpaid time off earnings directly affected by the change.

Earnings indirectly affected by the change. Example, ordinary pay that is reduced by the hours paid as time off.

Example

You process payroll monthly. March is the last completed payroll period.

On April 5, you enter 8 hours of paid vacation for Marion for March 3, affecting these earnings and deductions:

Vacation Time Off deduction. Defined as vacation hours x hourly rate, where hourly rate = 20/hour.

Vacation Pay earning. Defined as vacation hours x hourly rate, where hourly rate is from the Vacation Time Off deduction.

On April 5, you enter 8 hours of PTO for Marion for March 3, affecting these earnings:

Vacation Pay. Defined as vacation hours x hourly rate, where hourly rate = 20/hour.

Base Pay. Defined as salary - paid time off.

On April 5, you enter 8 hours of holiday for Marion for March 3, affecting these earnings:

Holiday Pay. Defined as holiday hours x hourly rate, where hourly rate = 20/hour.

Base Pay. Defined as salary - paid time off.

On April 5, you enter 8 hours of Annual Leave for Marion on March 3, affecting these earnings:

Annual Leave Pay. Defined as Annual Leave hours x hourly rate, where hourly rate is 30/hour.

Ordinary pay. Defined as (scheduled hours in the month - paid time off and leave hours) x hourly rate.

On April 5, you run the retro pay calculation.

On April 8, you calculate her regular payroll results.

When you run the retro pay calculation, Workday recalculates her March earnings and subtracts her prior results to determine the retro differences:

Pay Components	Recalculated Results	Prior Results	Retro Differences
Vacation Pay	8 hours of PTO x 20/hour = 160	0 for month of March	160 - 0 = 160
Vacation Time Off	8 hours of PTO x -20/hour = -160	0 for month of March	-160 - 0 = -160

Earning	Recalculated Results	Prior Results	Retro Differences
Vacation Pay	8 hours of PTO x 20/hour = 160	0 for month of March	160 - 0 = 160
Base Pay	3467 - 160 = 3307	3467 (standard monthly salary)	3307 - 3467 = -160

Earning	Recalculated Results	Prior Results	Retro Differences
Holiday Pay	8 hours of holiday x 20/hour = 160	0 for month of March	160 - 0 = 160
Base Pay	3467 - 160 = 3307	3467 (standard monthly salary)	3307 - 3467 = -160

Earning	Recalculated Results	Prior Results	Retro Differences
Annual Leave Pay	7.6 hours of annual leave x 30/hour = 228	0 for month of March	228 - 0 = 228
Ordinary Pay	(164.67 - 7.6) x 30 = 4712.1	4940.1	4712.1 - 4940.1 = -228

When you run the regular on-cycle payroll for April, Workday pulls the retro differences into her current payroll results. On her payslip, she sees the current period earnings:

Earnings	Dates	Hours	Rate	Amount	YTD
Base Pay	04-01-2010 to 04-30-2010	N/A	N/A	3467	13868

Earnings	Dates	Hours	Rate	Amount	YTD
Ordinary Pay	04-01-2010 to 04-30-2010	164.67	30/hour	4940.10

When you run the regular on-cycle payroll for April, Workday pulls the retro differences into her current payroll results. On the

Summary

tab of her pay results, you can see:

The current period earnings.

Differences from recalculated periods, including the dates of the source periods that produced the retro differences.

Pay Components	Retro Period	Rate	Amount (Retro Differences)
Vacation Time Off	03-01-2010 to 03-31-2010	-20	- 160
Vacation Pay	03-01-2010 to 03-31-2010	20	+ 160

The payslip displays earnings differences from recalculated periods below the current results. It also includes the dates of the source periods that produced the retro differences:

Earnings	Dates	Hours	Rate	Amount (Retro Differences)
Base Pay	03-01-2010 to 03-31-2010	N/A	N/A	- 160
Vacation Pay	03-01-2010 to 03-31-2010	8	20	+ 160

Earnings	Dates	Hours	Rate	Amount (Retro Differences)
Base Pay	03-01-2010 to 03-31-2010	N/A	N/A	- 160
Holiday Pay	03-01-2010 to 03-31-2010	8	20	+ 160

Earnings	Dates	Hours	Rate	Amount (Retro Differences)
Annual Leave Pay	03-03-2010 to 03-31-2010	7.6	30	+228
Ordinary Pay	03-03-2010 to 03-31-2010	157.07	30	-228