Retroactive payroll a complex task

Changing one transaction may trigger related transactions
By Alan McEwen
|Canadian Payroll Reporter|Last Updated: 02/13/2013

Retroactive payroll processing can be one of the toughest tasks faced by any payroll system. Yet, for many employers, the ability to process retroactive pay adjustments is a fundamental requirement.

Retroactive pay adjustments mean changes in employee pay, made after the pay period for which those changes are effective. Retroactive pay adjustments usually mean increases in gross pay, but sometimes taxable benefits or even employee benefit deductions are changed on a retroactive basis.

There are several things that make retro processing such a complex payroll task.