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:
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.Fiscal Period Earliest Retroactive Accounting Date January 1 - June 30, 2021 7/1/2019 July 1 - December, 2021 1/1/2020 January 1 - June 30, 2022 7/1/2020 July 1 - December, 2022 1/1/2021 January 1 - June 30, 2023 7/1/2021 July 1 - December, 2023 1/1/2022 January 1 - June 30, 2024 7/1/2022 July 1 - December, 2024 1/1/2023 January 1 - June 30, 2025 7/1/2023
In preparation for this change, please review payroll records and make all necessary adjustments. Please direct questions to Payroll Operations at 517-355-5010 or CTLR.Payroll@ctlr.msu.edu.