EPY: Retro Pay Can Calculate Incorrect Amounts for FLSA Premiums When Original Earnings Rates Subject to FLSA Were Overridden or Were Not Subject to Retro Pay
Last updated on AUGUST 29, 2017
Applies to:PeopleSoft Enterprise HCM Payroll for North America - Version 8.8 SP1 and later
Information in this document applies to any platform.
Reviewed for relevance 07/10/13
Retro is incorrect for recalculated FLSA earnings after employee receives a raise when original earnings uses a rate override.
An Other Earnings code is set up with 'Not Eligible for Retro Pay' checked on. Even though it is not to be subject to retro, it may still need to be taken into account by the retro FLSA calc when recalculating any overtime.
Presently, the program will only do so if the Earnings code Payment Type = Amounts Only and Effect on FLSA = Amount Only. If it is not set up this way, the other earnings amount is excluded from the FLSA earnings 'pot' and it
calculates the new overtime amount using the hourly rate. The new OT amount may be incorrect depending on the actual Effect on FLSA setting.
When a pay rate is overridden on the paysheet (either in the upper reg/OT section, or in the lower Other Earnings section), the retro calc is not capable of recognizing that the rate has been overridden, and it will apply job pay rate change to those hours. This is incorrect and it should leave the overridden rate earnings unchanged.
Issue 2 causes the problem that was reported in the ICE. When the pay rate is overridden and retro recalculates the earnings using the latest pay rate, it also passes these incorrectly restated earnings to PSPMFLSA, resulting in incorrect FLSA overtime calculations. The FLSA problem is therefore a downstream problem from issue #2
The problem affects both 7 day and 14 day FLSA periods.
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