Retroactive Payments: refer to any pay that you receive for a period that is different than the current pay period.  The most common example of retroactive pay occurs when an employee receives COLA (cost of living allowance) increases.  Gross wages are listed as a negative when a retroactive payment occurs 

For example: 

1. This employee initially earned $4,346 on 09/30/06
2. The employee received a retroactive pay increase 
3. Then, during this pay period the $4,346 was taken back (-$4,346)
4. $4,502 was then paid 

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