Troubleshooting Incorrect Premium Amounts in Payroll Due to Pay Code Effective Dates

Issue:

You may encounter a situation where a premium associated with a pay code is set to a specific rate, but during payroll processing, the system reflects a different or lower rate, resulting in an incorrect payment amount.

Solution:

1. Check the premium configuration

• Go to Accounting > Accounting Settings > Premiums.
• Check which pay code is associated with the premium.

2. Check the pay code configuration

• Go to Accounting > Accounting Settings > Pay Codes in AlayaCare.
• Edit the relevant pay code.
• Review the rate setup under the Rates section.

3. Update the effective date

• Ensure the effective date of the rate is aligned with the premium apply date. If the rate change was set to take effect after the premium date, previous rates (e.g., a lower amount) may be applied.
• To fix this, add a new entry with an earlier effective date, so the correct rate is applied to premiums entered before the rate change.

Please note that if you add a pay rate to the pay code with an effective date earlier than the previous rate, the premium will apply according to the date. For example, if the premium was applied on 9/20 and the effective date of the pay rate is 9/1, but you go back and add a different rate with an effective date for 8/1, the 9/1 rate will still apply. However, if the premium is applied on 8/20 then the pay rate will apply for the rate that has the effective date of 8/1.

Please note that you have the option of deleting a pay rate and re-adding it with a different date and rate.

4. Re-run payroll

Once the pay code's effective date is adjusted, re-run payroll to reflect the updated rate for the premiums.