EPY: Issues With FLSA and Increases That Retro Back
(Doc ID 644298.1)
Last updated on NOVEMBER 23, 2019
Applies to:PeopleSoft Enterprise HCM Payroll for North America - Version 8 SP1 and later
Information in this document applies to any platform.
This document was previously published as Customer Connection Solution 200995896
Issues with FLSA and Increases that Retro Back.
The employee is paid semi-monthly paid on the 15th and 30th of each month (just an example).
Employee has a rate of $10.00 effective 01/01/2005.
The employee has been paid through March 15th at the $10.00 rate.
The employee gets an increase that is effective 1/16/2005. The paperwork did not make it to Payroll until then.
The following happens:
If processed via "Retro Process" the system calculates the correct rate.
However, if the employee has additional earnings that "Look Back" on that prior period FLSA is calculating incorrectly (we think). It is doing the following
Reg hrs are calculated at the higher rate.
OT hrs are being calculated at the original rate.
When the Retro Process does this calculation it is done all at the higher rate.
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