Summary
Description
Due to reporting requirements from SARS it may be necessary to capture adjustments for previous pay periods in the People system. These adjustments must always be captured on a separate “Backdated Adjustment Amount” column to allow the system to differentiate which amounts should be excluded from regular processing for reporting purposes.
Backdated Adjustments may be made for the following scenarios:
• For a pay period in the same Tax Year and on the same employee tax record.
• For a pay period in the same Tax Year and on a different employee tax record (closed tax record).
• For a pay period in a previous Tax Year.
Backdated Adjustments made for the same Tax Year must be captured in the current “Live” pay period, whilst Backdated Adjustments for previous Tax Years must be captured in the final pay period of the applicable Tax Year. Statutory contributions (PAYE, UIF and SDL) will always be recalculated in the current period but will use the setting of the adjustment period. The Statutory contributions for the period in which the adjustments were made will remain unchanged.
Resolution
From the Navigation Pane
Expand Employee Management
Double Click on Employees
Select the applicable Employee
Click on Payslip Detail
The button will be displayed on the following Payslip Detail screens:
• Earnings
• Deductions
• Company Contributions
• Fringe Benefits
• Private Contributions
• Provisions
The button will not be active on the following Payslip Definition line Types:
• PAYE – Pay As You Earn
• UIF – Unemployment Insurance Fund (Deduction and Company Contribution)
• SDL – Skills Development Levy
Select the payslip line you wish to adjust and click on the Backdated Adjustments button. The Backdated Adjustments Detail screen will appear and allow you to capture new adjustments, edit and delete previously captured adjustments made in the current pay period.
The top section of the screen displays a summary of the Backdated Adjustments captured in the current pay period for the selected payslip line. The bottom section of the screen allows you to capture the actual adjustments for the applicable Pay Period.
New
• Allows you to create a new Backdated Adjustment for the selected payslip line.
• Creates a new record in the bottom section of the Backdated Adjustment Detail screen.
• The button will not be active when the Period Status = History, unless the Payslip Type is “Tax Adjustment Payslip”.
Delete
• Allows you to delete a Backdated Adjustment for the selected payslip line.
• Deletes the selected record in the bottom section of the Backdated Adjustment.
Undelete
• Allows you to undelete a Backdated Adjustment you selected to delete for the selected payslip line.
Broken Rules
• Allows you to refer to mandatory error or warnings to take note off
Close
• Allows you to close the backdated adjustment detail.
Payslip line
This section displays a summary of all the adjustments made for the selected earning line in the current period. The Total column displays the total of the backdated amounts plus the total amount for the current period on the payslip line.
Click on New on the Ribbon to add a new adjustment.
Unit Detail
In this section adjustments can be added, deleted or edited.
Effective Period
Click on the drop-down and select the pay period for which the Backdated Adjustment is effective.
• The drop down list will only be displayed for pay periods with a Period Status of “History”, therefore “Live” and “Future” pay periods are not displayed.
• Only history periods that have a pay period end date greater than the selected payslip’s tax record start date will be displayed in the drop-down list. This means that Backdated Adjustments are made for any period in the current Tax Year from the employee’s Payslip Detail screen.
Amount
Enter the financial value of the Backdated Adjustment amount.
Once you have completed the Backdated Adjustment Detail, click on Close.
The adjustment will be visible on the Payslip screen.
Backdated Adjustment Amount column displays the sum of all Backdated Adjustment amounts captured for the selected payslip line for the current pay period. The backdated amount will be added to the Total for the current payslip. Use the Column Chooser to add the column.
Therefore Total = Fixed
+ Recurrence Amount
+ Amount
+ Backdated Adjustment Amount
- Pro Rata Amount
+ BF Amount (Deductions only)
- CF Amount (Deductions only)
Note: Should the backdated amount not be included for the current period’s net salary, a negative definition or “advance” may be entered.