Wages Relativity Adjustment Back Pay procedure

IMPORTANT: Before proceeding with the below instructions, you need to have the Wages Relativity Adjustment amount imported already in the HRMS.

For those who already imported the Wages Relativity in September 2024 Payroll, you may proceed with the below.

For those who shall do it in October Payroll, you must proceed with import of the Wages Relativity Adjustment amount using our dedicated PD Code, prior to proceeding with the Back Pay.

To proceed with the calculation and payment of the Wages Relativity Adjustment Back Pay, including the adjustment of the variables, please follow the below instructions :-

Step 1: Go to Payroll –> Monthly Procedures–> Section Inputs - Pre-Payroll –> select Wage Relativity Adjustment Back Pay

Step 2: Select the Company you wish to perform the calculation

Step 3: Select the Month for which the Back Pay shall apply. HRMS will handle one month at a time, the operation shall be repeated for the other Months concerned by the Back Pay

Step 4: The list of Payroll variables used during the selected Month is displayed. If you do not want to backpay some or all the variables, you can deselect the payroll variable/s. By default, all payroll variables will be displayed.

Step 5: Click on the 'Transactions' tab to view details of the Transactions

Step 6: Once on the Transactions tab, the 'Calculate / Generate' button shall be activated, click on the 'CALCULATE BACK PAY' button

Step 7: (Rate, Quantity,Amount, Foreign Amount, Exchange rate, Currency code, Monthly basic, Daily basic, Hourly basic) are figures used in the selected month calculation (excluding the Wage Relativity Adjustment)

(New Monthly Basic, New daily basic, New hourly basic, New rate, New quantity, New amount, New foreign amount) are figures that include the Wage Relativity Adjustment.

Difference: is the (New amount - Amount) which shall be the adjustment to be paid/deducted to the Employees.

Should you wish to modify the amount to be paid/deducted for your Employees, you can do so by entering the amount manually in the column 'Difference'

P/D adjustment: They consist of system in-built P/D codes that shall group and sum Payments and Deductions sharing the same properties. (Example all Employer contributions adjustment summed under one code, same for non-Taxable, Taxable items).

This concept will avoid having a PD Code Adjustment for each and every Pay items.

Step 8: Once you have validated the Differences to be paid/deducted, click on the CALCULATE/GENERATE –> GENERATE BACK PAY

Please launch a Payroll Calculation to process the backpay for the specific month. After each backpay, a Payroll Calculation must be done

The Back Pay amount as well as the validated Payroll Variables for the selected Month, have been processed and can be viewed in your Payroll Checklists

Important:To maintain the consistency of the data in that grid, you will not be able to modify the amount in the 'Payment/Deduction' menu for these adjusted items.

Any modification MUST be carried out in the 'Difference' column of that grid.

To proceed with the Back Pay of the other remaining months and other Companies you may have, please repeat Step 1 to 8 above.

How to cancel the Back Pay for a particular Month

For some obvious reasons, you might want to cancel the Back Pay for a particular Month.

To note that when you cancel, it will apply to ALL Employees concerned for the month, you can't cancel for one or some Employees.

To cancel a generated month Back Pay please proceed as follows:

Step 9: Go to Payroll –> Monthly Procedures–> Section Inputs - Pre-Payroll –> select Wage Relativity Adjustment Back Pay

Step 10: Select the Company you wish to perform the cancellation

Step 11: Select the Month for which the cancellation shall apply and click on the 'Transactions' tab

Step 12: Once on the Transactions tab, click on 'Calculate / Generate' and click on the 'UNGENERATE BACK PAY' button All the generated Transactions for the selected Month shall be deleted and not computed in your current Month Payroll