We all know mistakes can happen, and processing payroll is no exception.
You may have overpaid an employee in your software or entered the wrong finish date for a leaver. This article explains how to handle corrections.
In the case of a leaver's date processed wrongly, speak to revenue first.
John gets €500 gross pay per week. In week 1, John was out sick for one day. His employer doesn’t pay him for sick leave so John should only receive €400. The payroll operator wasn’t informed of this on time John received the full €500.
John’s employer must recoup the overpayment of €100 in the next pay run. John gets paid €500 weekly, so in week 2 John’s gross pay gets reduced to €400. The adjustment in week 2 will reflect the correct year-to-date payment values when the pay run processes.
The correction of the underpayment should be made in the next pay run.
Mary normally gets €400 per week. In week 1, Mary worked overtime which meant that she should have been paid an additional €50. The payroll operator wasn’t informed of this on time and so Mary was only paid €400 instead of €450.
Mary’s employer has agreed to pay the €50 in the next pay run. Mary’s gross pay is €400 per week, so her gross pay is increased to €450 in week 2 to correct the underpayment. The adjustment in week 2 will reflect the correct year to date payment values when the pay run is processed and the payroll submission is completed.
If you report incorrect values on a submission that can’t be rectified in the next pay run by either increasing or decreasing the employee’s gross pay, please contact Sage technical support for further assistance.