Retro Active Benefits and Deductions are designed and intended to recover and recalculate benefit deductions which may have been missed because of processing delays. Retroactive benefits and deductions are changes that affect employee payroll deductions prior to the last paycheck. For example, an employee wants to remove her husband from her health insurance coverage because he is now eligible for insurance through his new company. These changes can be made retroactively to reflect the appropriate date.
The Retroactive Benefits/Deductions functionality of the PeopleSoft Payroll application enables you to automatically calculate retroactive benefits and deductions whenever changes are made. Retroactive changes to benefits and deductions might become necessary for a variety of reasons including late paperwork, data-entry errors, modified union contracts, and changes to employment laws. PeopleSoft will not recalculate after pay frequency changes or paygroup changes that occur in the middle of a pay period.
To enable retroactive benefits and deductions processing, select the Retroactive Benefits/Deductions check box on the Installation Table - Product Specific page.
