Make corrections to a previous tax year
Description

We all know mistakes can happen and processing in Sage Payroll is no different. If you need to correct a payroll in a previous tax year, you can correct this by following the steps in this guide. Let's take a look.

NOTE: If you need to make a correction to a previous pay period in the current tax year, you can use this handy guide.

Cause
Resolution

Once your pay period is closed off and submitted to Revenue, if you've made a mistake, you should make your correction in the current period of the current tax year.

Follow the relevant steps below to make the correction you need.

 NOTE: If you need to make a correction to values made in the current pay period, the process is different. Read more >


If an employee has been overpaid

You don't need to make any manual adjustments in Sage Payroll. Instead, the correction to recoup this overpayment should be made in your next pay run.

EXAMPLE: John normally gets €500 gross pay per week. In week 52 of the previous tax year, John was off sick for one day. His employer doesn't pay sick leave so John should have only been paid €400. However, the payroll operator wasn't informed of this on time and so John was paid the full €500.

John's employer must recoup the overpayment of €100 in the next pay run. John gets paid €500 weekly, so in the next pay run John's gross pay will be reduced to €400.


If an employee has been underpaid

You don't need to make any manual adjustments in Sage Payroll. Instead, the correction of the underpayment should be made in your next pay run.

EXAMPLE: Mary normally gets paid €500 per week. In week 50 of the previous tax year, Mary worked overtime, which meant that she should have been paid an additional €100. The payroll operator wasn't informed of this on time, so Mary was only paid €500 instead of €600.

Mary's gross pay is €500 per week, so her gross pay should increased to €600 in the next pay run to correct the underpayment.


If an employee has been Paid correctly but left in a previous period and a submission was sent

You should make the adjustment in the current period. To do this:
  1. On the menu bar click Processing then click Time and Pay.
  2. Under Entry mode, select Random, then click Continue.
  3. Next to the Employee box, click browse  and click the relevant employee.
  4. In the Leaving/Suspend drop-down menu, click Leaving.
  5. Select the No Pay Due check box. This will zero out any values within the employee's time sheet.
  6. In the Date box, edit the employee's finish date if required.



  7. Click Save then click Cancel.

When you send your current submission the Revenue will be notified the employee is a leaver.


Incorrect details on a submission

If you make any changes to a pay period after you've sent your initial payroll submission to Revenue, you need to resend the payroll submission to let Revenue know about these changes. The amended payroll submission updates the incorrect information that Revenue had previously received.

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