Use this tab to specify the payroll code to use to implement the change in the current pay period.
The system is able to consult the amendment audit for any possible changes to any element that may affect the value of an employee’s salary at any given point in time. It can then review any payroll codes influenced by the value of the annual salary and consult the payroll history to examine any payments, or potentially deductions, made in the required time frame. Each transaction is compared against what the system considers should have been paid, added to any backdated pay awards for the same transaction from a previous pay period, to consider any adjustments to be made in the current pay period.
After an adjustment is recognized, the system needs to know which payroll code to use to implement the change in the current pay period and it does this by consulting the definitions described below. If a positive adjustment has been recognized, the payments payroll code definition is referenced for the payroll code for positive back pay adjustments. If one is located — that is, it is not currently empty, this code is used to create the proposed payment; otherwise, no adjustment is proposed. Similarly, with a negative adjustment — that is, the deductions code is located and if present a deduction is proposed for the current pay period.
Only Value type payroll codes are made available for selection in each category and only those of a similar payment or deduction type. The payroll code being maintained is eliminated from each of the lists to avoid a payroll code appointing itself for back pay adjustments.
For information about the details you enter on the Replacement Codes tab, click here.