As you consider how you will administrate the harmonization of Salaries we would like to remind you of the Gross Pay Retro module (2,1,7) which can be used to expedite this process quite nicely.

OVERVIEW OF THE GROSS PAY RETRO PROCESS:

The Gross Pay Retro process (using the Grid Rates Retro selection)—calculating from the difference between two salary grid points—factors in the employee’s FTE and is taking the difference between the new and old rate, retrieving the number of days the employee worked for the specified period and multiplying the retro rate by the number of days to derive at the total retro payment. In the following example the retro period is April, May and June and the employee’s FTE is 0.5:

      OLD

• APR/MAY/JUN, Total Earnings Paid: 7,840.67
• Total Days Worked = 31
• 7,840.67 / 31 = 252.92 (OLD RATE)

For the months of April-June this employee earned a total of 7,840.67 and worked 31 days. Under this old rate the employee’s pay rate was 252.92/day.

      NEW

• New annual salary (0.5 FTE) = 28,113.50
• Contract = 10 months
• 28,113.50 / 10 = 2,811.35 / month
• 2,811.35 / 10 DAYS = 281.14 (NEW RATE)

The new annual amount of 28,113.50 factored of 10 months with a 0.5 FTE (10 days) derives a new pay rate of 281.14

      281.14 - 252.92 = 28.22 DIFF.
      28.22 * 31 = 874.82.

The effective result is that this employee should receive a retro payment of 28.22 for each day he/she worked for the months Apr-Jun. This employee worked 31 days and therefore the Gross Pay Retro process will derive a total retro payment of $874.82.

The Gross Pay Retro process allows you to specify whether or not you would like to use the Master #1 Function Line Salary Grid for grid retro. Likely for your Teacher Payroll this will be the case however, for you TOC payroll, you find that the function line you want to use to pay the retro may be the 2nd or 3rd function line. In this case you would tell the system to “N” not use the master function line and then you will be prompted to enter 1 or up to 25 paycodes where the system will then search all function lines and retrieve the one that matches the pay code(s) that you have specified. When an employee has no function line that contains one of the selected pay codes then the employee will be bypassed from the retro.

PRELIMINARY CONSIDERATIONS REGARDING GROSS PAY RETRO

Invariably each year changes are made to employee’s function lines where their salary grids are incremented to a higher level; the Gross Pay Retro process must be executed BEFORE salary grid increments are loaded onto employee’s function line.

Prior to running the Gross Pay Retro process you will need to ensure correct values are loaded in the Salary Grid Database (4,2,10). Take note of the grid point for both the old and new grid rates as you will be prompted for this information when running Gross Pay Retro (you can use the Salary Grid Adjustment module 3,2,8 to move grid amounts to preferred grid points).

Please Note:

Currently Susan, our payroll developer, is writing a process to handle the retro for those clients that use the PRM to OPS timesheet interface where three entries (lower rate, higher rate, retro differential) are generated using three separate pay codes in PRM and interfaced for payment in payroll. This process will find all entries—using the date—where there is a match between the lower and retro entries and then marrying the two together to reconcile with the Gross Pay Retro process in payroll.

Please contact Dylan Richardson directly if you intend on using the Gross Pay Retro process in administrating your salary grid harmonization process.