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Retroactive Payroll Processing

What is it?

When master data changes are made to an employee’s assignment (e.g., a change in the account number used to pay the employee), the degree of retroactive treatment can be set within each action.

Payroll Retroactivity Parameters Effective January 1, 2017

Best practice calls for timely accounting and payroll transactions. We encourage regular (at least monthly) review of all HR/Payroll transactions and expect most retroactivity to be limited to the current fiscal year. It is understood that certain circumstances, in particular with grants, warrant retroactivity beyond the current fiscal year.

Beginning January 1, 2017, the earliest retroactive accounting date in the HR/Payroll system (SAP) will be limited to 18 months. A unit’s close attention is needed to ensure well-timed employee assignment changes.

HR/Payroll System Retroactive Accounting Dates

Earliest retroactive accounting dates will be set as indicated below:

Fiscal Period Earliest Retroactive Accounting Date
January 1 - June 30, 2021 7/1/2019
July 1 - December, 2021 1/1/2020
January 1 - June 30, 2022 7/1/2020
July 1 - December, 2022 1/1/2021
January 1 - June 30, 2023 7/1/2021
July 1 - December, 2023 1/1/2022
January 1 - June 30, 2024 7/1/2022
July 1 - December, 2024 1/1/2023
January 1 - June 30, 2025 7/1/2023

Retroactivity parameters do not impact the correction of actual pay. These corrections will be made whole, but the retroactive change to the data will be limited to 18 months if necessary.

In preparation for this change, please review payroll records and make all necessary adjustments. Please direct questions to Payroll Operations at 355-5010 or

Michigan State University