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Correct a previous tax year

Created on  | Last modified on 

Summary

Correct mistakes in a previous tax year in Sage 50 Payroll Ireland.

Resolution

Once you close and submit a pay period to Revenue, you can’t change that period. You correct all previous tax year issues in the current period of the current tax year. Use the guidance below to handle common correction scenarios.

We also have the following guides:

If you overpaid

Don’t adjust past periods or use manual corrections. Reduce the employee’s gross pay in the next pay run.

EXAMPLE:

An employee normally earns €500 a week. In week 52 of the previous tax year, they were off sick for one day and were due €400. Because the payroll wasn’t ready in time, you paid €500. To correct this, reduce their gross pay by €100 in the next pay run.

If you underpaid

Don’t adjust past periods or use manual corrections. Add the missing amount to the employee’s gross pay in the next pay run.

EXAMPLE:

An employee usually earns €500 a week. In week 50 of the previous tax year, they worked overtime worth €100, but you paid €500. To fix this, increase their gross pay to €600 in the next pay run.

If an employee left in a previous tax year

If you paid the employee correctly and they left in a previous tax year, record the leaving details in the current period.
  1. Go to Processing, then select Time and Pay.
  2. Under Entry mode, select Random, then Continue.
  3. Next to Employee, select Browse, then choose the employee.
  4. In Leaving/Suspend, select Leaving.
  5. Select No Pay Due to clear the timesheet.
  6. In Date, enter the employee's leaving date.
  7. Select Save, then Cancel.

When you send the next payroll submission, Revenue receives the updated leaver details.

Incorrect details on a submission

If you change payroll data after sending a submission, resend a payroll submission. The new submission replaces the previous submission automatically.