When a mistake has been made in a previously completed pay process, the simplest method is to correct it in the next normal pay cycle.
When to use this method
If it can be helped, avoiding restoring from a backup or having the support team use advanced support tools to correct pays is best avoided.
This method works by paying or deducting the difference in the next normal pay cycle by value of gross earnings.
However, the difference in gross earnings could be significant and may not be acceptable to both the employer and employee.
Correcting an underpayment
Where an employee was underpaid, add the value as a backpay under allowances in the next pay run.
In the payrun screen, select the employee.
Navigate to the Allowances tab.
Add a backpay allowance code.
Enter the amount of the underpayment.
Process the pay as normal.
Correcting an overpayment
Where an employee was overpaid, create a separate work or allowance code (whichever is relevant) and set the units to a negative amount with the appropriate rate.
If the allowance code does not allow negative units:
Go to Codes.
Select Allowance codes.
Select the relevant paycode.
Click Edit (bottom of code list).
Change calculation method from 'amount per pay period' to 'units x rate'.
Click Save.
You will now be able to set the units to negative.
Processing the overpayment recovery:
In the payrun screen, select the employee.
Navigate to the Allowances tab (or Work tab if using a work code).
Add the paycode you created.
Enter negative units (e.g. -1) with the appropriate rate.
Process the pay as normal.
Important considerations
This method affects gross earnings in the pay period that the correction is being applied, which may impact tax calculations and other deductions.
Ensure you communicate with the employee about the correction before processing.
If the result of the correction is a negative NET pay, you cannot use this method.