1. Retroactive pay should be labeled as such to avoid any confusion when reviewing pay runs. To make sure that the employee's retroactive pay is clearly labeled, create a payroll instruction called Retroactive pay. Follow the instructions in the Add a new payroll instruction (earning or benefit) section of our How to create an earning pay code article.

When creating the Retroactive pay payroll instruction, make sure that the instruction you create is set as Non-Periodic. See the Instruction Behavior section of our How to create an earning pay code article for more details.

2. Create an ad-hoc pay run. Follow the instructions in our How to create an ad-hoc pay run article.

3. Add the employee you want to pay retroactively to the ad-hoc pay run's input sheet. Follow the instructions in our How to add an employee to the input sheet article.

4. Add the employee's retroactive pay to the ad hoc payroll using the Retroactive pay payroll instruction you created in step 1. Follow the instructions in our How to add payroll instructions article.

5. Finish the pay run as usual. For more details, check out our How to finish (approve) a pay run article.