Can Your Software Handle Retroactive Pay Changes?

Yes it can. Handling payroll is already complex, but managing retroactive pay adds another layer of difficulty. Whether it’s adjusting salaries for promotions, correcting missed pay increases, or handling backdated changes, retro pay calculations are often tedious and prone to error. That’s where our feature for configuring retroactive pay steps in to make a real difference.

This feature is designed to streamline the process, reducing manual calculations and enabling businesses to handle retroactivity with confidence and accuracy. Here’s how it works—and why more businesses are using it to improve their payroll management.

1. Streamlined Retro Pay Calculations

APlus eliminates the need for manual retroactive pay calculations. Once salary changes are entered into the system, it automatically analyzes the impacted pay periods, calculates the owed amount, and applies the update with precision.

For instance, imagine an employee received a merit-based salary increase that was meant to take effect two months ago but was only approved this month. Instead of manually backtracking hours worked or adjustments for benefits, our system handles all of it automatically. With just a few clicks, you can ensure the employee gets the correct retro pay without the stress of manual input.

2. Reduced Errors and Compliance Risks

Manual retro calculations can be time-consuming and error-prone, especially when large teams or multiple adjustments are in play. Errors in payroll are more than just frustrating—they can lead to employee dissatisfaction and even compliance risks.

We address this by automating calculations that account for complex scenarios, including partial pay periods, variable pay rates, or deductions. Businesses using this feature have reported a noticeable drop in payroll discrepancies, saving valuable time spent on corrections.

For example, a payroll department shared how the system helped them calculate back pay for several employees who were promoted mid-quarter. Before using this feature, their HR team had to dedicate days to adjustments. With the retro pay feature, the process now takes minutes, ensuring accuracy and compliance every time.

3. Saving Time and Improving Efficiency

One of the most significant advantages of our retro pay feature is the time it saves payroll teams. By automating calculations and applying retro changes in seconds, it frees up team members to focus on strategic tasks.

4. Enhanced Payroll Management for Both Salaried and Hourly

Retro Pay is also available for hourly workers and can be a part of the Time Prep Process.  Any retroactive rate or compensation change automatically pulls your employees into the Hourly Retro Pay step in the Time Prep Process.  Similar to the Historical Timesheet Corrections, system administrators will be able to quickly identify and process any outstanding Retro Pay records in the current pay period.  The best part? Retro Pay and Historical Corrections can be calculated together or separately! It’s up to you and what works best for your organization.

If you’d like to learn more about how this feature can help you and your Company contact us. Consultation is always friendly and free. Already a client and need more detailed help on this subject?  Contact your friendly CSS directly.