Note on Job Costing:
If the retroactive pay is for time entries without job cost information or if you do not want to send the retroactive pay amounts to the Job Cost application, use Option 1. If the retroactive pay is for time entries entered with a job that is not a union or certified job, use Option 2. If the retroactive pay is for time entries entered with a union or certified job, void the original check and correct it. See How do I correct a payroll check with incorrect earnings when I have already paid the employee?
Option 1: Enter and track an employee's retroactive pay separately from regular pay on their next check
Create a Pay ID for retroactive pay. Set up the new Pay ID with a Pay Type of Other to track the pay separately on your payroll records and the check stub. See How do I set up a new Pay ID in Payroll?. If you do not need to track retroactive pay separately from regular pay, enter a check with the employee's regular Pay ID and the retroactive amount.
Use Enter Time or Enter Checks to add the retroactive pay to the employee's check. The check date of the check is when the wages will be reported for tax purposes. The accounting date is when the information will be sent to interfacing applications. Payroll settings determines if the accounting date is set to check date or period end date.
Option 2: Enter and track an employee's retroactive pay using the original pay period and check date
Enter a check with the same Period end date and Check Date as the original check. If the taxes are paid for that period, consider the tax amounts that calculate with the retroactive pay and determine whether you need to amend your original tax deposit. If it is for a prior quarter, there is also tax form corrections to take into consideration.