Retro Earnings Definition
Earnings paid to an employee “after the fact” for wages that should have been paid in a prior paycheck.
Retro Earnings Extended Definition
Essentially, retro earnings are funds paid to employees after they’ve completed work or another compensation agreement has been made, dating back to a specific time.
Retro earnings are most common with salary or hourly wage raises that take place retroactively or when union deals are made to retroactively provide bonuses, payment adjustments, etc.
For Payroll Adjustments, There’s Retro Pay
Last Updated By
Rachel Blakely-Gray | Apr 28, 2023