To replicate the issue, follow these steps:

1) set up 2 employees with an hourly paycode and a related OT paycode

2) inactivate only one of the employees

3) Update the rate on the master hourly paycode in pay codes setup

4) Roll down changes to ALL employees

5) Check the rate on the Master OT paycode in paycode setup to see that the OT rate has been updated to the amount in the related hourly paycode

6) Check the active employee and the OT rate has updated

7) Check the inactive employee and the OT rate did not update

Is there a reason that the OT rate does not update on inactive employees when the related hourly rate does update?

Per Microsoft:

1. This functionality does not work for inactive employees, only active employees. Inactive employees were not considered when the rolldown functionality was created from the company setup level.
2. The company set up level for inactive employees the rolldown feature does not work for based on pay codes.
3. The employee set up level for inactive employees the rolldown feature does work for based on pay codes.

The rolldown should work for all paycode if the ALL employees is marked.