Payroll

Payroll Home Page Picture

Retroactive Payroll Processing

What is it?

When master data changes are made to an employee’s assignment (e.g., a change in the account number used to pay the employee), the degree of retroactive treatment can be set within each action.

Payroll Retroactivity Parameters Effective January 1, 2017

Best practice calls for timely accounting and payroll transactions. We encourage regular (at least monthly) review of all HR/Payroll transactions and expect most retroactivity to be limited to the current fiscal year. It is understood that certain circumstances, in particular with grants, warrant retroactivity beyond the current fiscal year.

Beginning January 1, 2017, the earliest retroactive accounting date in the HR/Payroll system (SAP) will be limited to 18 months. A unit’s close attention is needed to ensure well-timed employee assignment changes.

HR/Payroll System Retroactive Accounting Dates

Earliest retroactive accounting dates will be set as indicated below:

Fiscal Period Earliest Retroactive Accounting Date
Current 1/1/2011
January 1 - June 30, 2017 7/1/2015
July 1 - December 31, 2017 1/1/2016
January 1 - June 30, 2018 7/1/2016
July 1 - December 31, 2018 1/1/2017
January 1 - June 30, 2019 7/1/2017
July 1 - December 31, 2019 1/1/2018
January 1 - June 30, 2020 7/1/2018

Retroactivity parameters do not impact the correction of actual pay. These corrections will be made whole, but the retroactive change to the data will be limited to 18 months if necessary.

In preparation for this change, please review payroll records and make all necessary adjustments. Please direct questions to Payroll Operations at 355-5010 or payroll@ctlr.msu.edu.

Michigan State University