TDI/WC authorization can occur later than the actual pay period incurred. In these cases, a reclass of pay is typically needed. What happens if HR and Payroll do not enter retroactive entries by the same deadline for a particular pay period (for either WC or TDI)?
An over or underpayment could occur on one check and then be inadvertently adjusted on the next check if HR and Payroll don’t coordinate on which payroll cycle will be used for the reclass. This is because both Payroll entries and HR entries are pieces of the reclass.
Consider the following scenario for the July 20, 2022 paycheck where the Supervisor deadline was July 11, 2022 and Central Payroll begins processing the morning after the Supervisor deadline. If Department Payroll enters RNG for -$242.35 by July 8, 2022, but HR admin enters and approves the WC Sick hours and amount of $242.35 on July 13, 2022 (during Lock Out period), those amounts would not process for the same paycheck date as any new T&L entries submitted after the Supervisor Deadline will be held for the next payroll processing cycle. In this situation, for July 20, 2022, Payroll’s negative entry would be recognized to reduce pay by -$242.35 but the positive $242.35 from the HR Admin WC Sick entry would be on hold until the next paycheck cycle and added to the employee’s August 5, 2022 check instead. If both HR and Payroll had entered their entries by July 8, 2022 (prior to the Supervisor Deadline), then there would have been a next zero impact on the employee’s July 20th check (-$242.35 + $242.35 = 0).
Further guidance on reclassification can be found via the guides:
https://ags.hawaii.gov/hip/files/2022/10/Workers-Comp-Process-Guide.pdf
https://ags.hawaii.gov/hip/files/2022/07/TDI-Workflow-Guide.pdf