7.18.00: Adjusting Wages and/or Hours on a DTL2 Record


First you must determine if you need to report an adjustment or a retroactive payment. What is the difference?

An adjustment is made to correct an individual employee’s record that has already been submitted and posted to ORS, or to report a record that should have been submitted but was not (i.e. an employee that was left off your pay period report).

A retroactive record reports contract settlement payments made to a group of employees working under a contract (hourly or annual.) Public Act 54 of 2011 prohibits the payments of retroactive wages for labor contracts that have expired. As a result, ORS no longer expects retroactive pay adjustments for settled contracts after June 8, 2011.

A DTL2 adjustment record will not post until it has passed the edits and validations in the batch process. When adding to or subtracting from previously posted wages (as opposed to adding wages that were never previously posted) our system will take into account wage codes, class codes, pay period begin and end dates and pay rates on the adjustment record as compared to the original posted wages.

We strongly suggest that you use the View Employee Info link on your web reporting site to verify what was posted to the member account for the specific pay period to be adjusted. The View Employee link shows exactly what is posted at ORS and it may not match your in-house records. You can see wage codes, class codes, begin and end dates, wages and hours. This data may help you determine the correct codes to use on your adjustment records to successfully post the adjustment. Data on the adjustment records that do not match or correspond with posted data could lead to suspended DTL2 records.
 
Note: Make adjustments to prior pay periods on your most current unposted payroll report with an end date later than the end date of the records to be adjusted. Any employer and employee contribution payment required as a result of a positive adjustment record is due on the same date as payment for the report on which the adjustment appears.

Information and tips for adjusting wages and/or hours:

  • You can adjust only wages, only hours, or both for a specific pay period on an adjustment DTL2 record.
  • Adjustments can only be made for prior pay periods. In other words, an adjustment DTL2 record cannot have the same payroll begin and end dates as the payroll report on which the adjustment record appears.
  • You must add one adjustment DTL2 record for each pay period that needs an adjustment. Adjustments cannot be made on one record as a lump sum for wages and /or hours if the wages and hours in question were originally reported on separate records each pay period.
  • Pay rates are not required on negative adjustment records.
  • Pay rates are required on positive adjustment records.
  • To add hours to wages posted incorrectly without hours using wage code 08 – Summer Spread or wage code 09 – Wages Without Hours, is a two-step process. The posted wages must first be subtracted out using wage code 86 – Summer Spread Negative Adjustment or wage code16 – Wages Without Hours Negative Adjustment. Next, a positive adjustment record must be added using wage code 05 – Regular Wages Positive Adjustment to add both wages and hours. A rate of pay will be required on the positive adjustment record.
  • ORS will calculate the pay rate for each adjustment record. We look at  the originally posted wages, add or subtract the wage and/or hour amounts on the adjustment record, divide the new total amount of wages by the new total amount of hours and use the result as the rate of pay. If your adjustment record includes a pay rate not equal to or within the allotted tolerance the record will suspend. If a negative adjustment record does not include a pay rate and the newly calculated pay rate does not match the rate of pay on file at ORS the record will suspend.
  • For negative adjustments you must use the negative adjustment wage code that corresponds to the wage code used to post the original record. See the table below.
  • Never add an adjustment DTL2 record to make adjustments to defined benefit employee or employer contributions. ORS calculates the correct amount of contributions for each DTL2 record and will always post that amount to the member or employer account.  Any under- or over- withholding issues must be dealt with at your reporting unit.
  • If you need to adjust wages or hours prior to October 1, 2002 the adjustment cannot be done on a payroll report. Send a wage and service adjustment letter to ORS and we will make the adjustments for you.

 
The table below lists the wage codes available and gives a description of each. The corresponding negative and positive adjustment codes are listed directly below the regular wage code.

Code Name Description
01 Regular Wages This code is used to report active members who have received regular wages.
05 Regular Wages Positive Adjustment This code is used to report a positive adjustment (hours and/or wages) to one previously posted pay period. This adjustment record begin and end dates must match a payroll calendar. You are required to submit one adjustment record for each pay period you are adjusting. Only wage and service fields requiring adjustments should be populated. The wages and/or hours will be added to the previously reported amounts.
06 Regular Wages Negative Adjustment This code is used to report a negative adjustment (hours and/or wages) to one previously posted pay period for regular wages (wage code 01 or wage code 05). Only wage and service fields requiring adjustment should be reported. This record must also contain the same employment class code and begin and end dates that were used to report regular wages. The fields that are reported will be subtracted from the previously reported amounts. (Note: do not use a minus sign in any field.) You are required to submit one adjustment record for each pay period you are adjusting. The wages and/or hours will be subtracted to the previously reported amount.
04 Retroactive Wages This code is used to report a member who has received a retroactive payment prior to June 8, 2011. Retroactive payments can be reported as lump sums for a period that spans up to, but not exceeding a fiscal year (July 1 – June 30). ORS will evenly distribute the amount reported with a wage code 04 between each pay period within the begin and end dates designated. When reporting retroactive payments as a lump sum, the record’s begin and end dates should be the beginning and ending dates of the period for which the payments may be evenly distributed. This record must also contain the same employment class code that was used to report regular wages during the retroactive adjustment period.
45 Retroactive Wages Positive Adjustment This code is used to report a positive adjustment to a previously posted retroactive wage (wage code 04) payment. Retroactive payments can be reported as lump sums for a period that spans up to, but not exceeding a fiscal year (July 1 – June 30). In order to use wage code 45, there must be a previously posted retroactive wage (wage code 04) record. The begin and end dates, and the class code of the adjustment record must match the codes used on the original 04 record. The wages will be added to the previously reported amount.
46 Retroactive Wages Negative Adjustment This code is used to report a negative adjustment to a previously posted retroactive wage (wage code 04) payment. In order to use wage code 46, there must be a previously posted retroactive wage (wage code 04 or wage code 45) record. The begin and end dates, and the class code of the adjustment record must match the codes used on the original 04 or 45 record. The wages will be subtracted from the previously reported amount.
07 Wages Without Contributions This code is used to report a member that is retired and is returning to work with employment class codes 9003, 9004, and 9005. Records with wage code 07 must contain wages and hours, and must use retiree class codes.
75 Wages Without Contributions Positive Adjustment This code is used to report a positive adjustment to previously posted wages without contributions (wage code 07) or to add wages without contributions to a previously posted report. These are post-retirement wages. You are required to submit one adjustment record for each pay period you are adjusting. The wages and /or hours will be added to the previously reported amount.
76 Wages Without Contributions Negative Adjustment This code is used to report a negative adjustment to a previously posted wages without contributions (wage code 07). These are post-retirement wages. The begin and end dates, and the class code of the adjustment record must match the codes used on the original 07 record. The wages and/or hours will be subtracted from the previously reported amount.
08 Summer Spread Wages This code is used to report active members who are not working, but who continue to receive their wages over the summer months. Records with wage code 08 cannot contain hours. Do not use this wage code with retiree class codes. The report begin dates must be in the date range of June 1 through September 30.
85 Summer Spread Wages Positive Adjustment This wage code is used to report a positive adjustment to previously posted summer spread wages (wage code 08) or to add summer spread wages to a previously posted report. This DTL2 record must not include any hours. The report begin and end dates must be in the date range of June 1 through September 30. The begin and end dates of the adjustment record must match a payroll calendar date. You are required to submit one adjustment record for each pay period you are adjusting.
86 Summer Spread Wages Negative Adjustment This wage code is used to report a negative adjustment to a previously posted summer spread wages (wage code 08) payment. This DTL2 record must not include any hours. The begin and end dates, and the class code of the adjustment record must match the codes used on the original 08 record. The wages will be subtracted from the previously reported amount.
09 Wages Without Hours This code is used to submit reportable wages without hours. For example: Longevity payments. The end date of this record must be between the begin and end dates of the current report.
15 Wages Without Hours Positive Adjustment This code is used to report a positive adjustment to a previously posted wages without hours (wage code 09) or to add wages without hours to a previously posted report. You are required to submit one adjustment record for each pay period you are adjusting. The end date of this record must be between the begin and end dates of a prior report. The wages will be added to the previously reported amount.
16 Wages Without Hours Negative Adjustment This code is used to report a negative adjustment to a wages without hours (wage code 09) payment made in a previous pay period. This record must also contain the same employment class code and the same begin and end dates that were used to report the previously posted wages without hours. The negative adjustment that is reported will be subtracted from the previously reported amounts. (Note: do not include a negative sign.) You are required to submit one adjustment record for each pay period you are adjusting. The wages will be subtracted from the previously reported amount.
11 Coaches Wages This code allows you to spread reported lump sum wages and hours over multiple pay periods for seasonal or part-time coaches. The end date of a record using wage code 11 must match the end date of the pay period. If a coach is full-time and paid every pay period for coaches, use wage code 01 for regular wages.
25 Coaches Wages Positive Adjustment This code is used to report a positive adjustment to previously posted coaches wages (wage code 11) or to add coaches wages to a previously posted report. The wages and/or hours will be added to the previously reported amount.
26 Coaches Wages Negative Adjustment This code is used to report a negative adjustment (hours and/or wages) to one previously posted pay period for coaches wages(wage code 11). Only wage and service fields requiring adjustment should be populated. This record must also contain the same employment class code and the same begin and end dates that were used to report the original wages. The fields that are reported will be subtracted from the previously reported amounts. (Note: do not use a minus sign.) You are required to submit one adjustment record for each pay period you are adjusting. The wages and/or hours will be subtracted from the previously reported amount.

 

For instructions on how to adjust wages and/or hours on a DTL2 record see the next section, 7.18.01: How to Adjust Wages and/or Hours on a DTL2 Record.

Last updated: 5/30/2017