How to explain corrections to employees in Sage Payroll.
Resolution
If you corrected an employee's pay, their payslip may look different and prompt them to ask you about it. Here we'll cover how to explain a payroll correction to them.
First, you'll need to explain the reason for the correction. For example, a missed bonus payment, overtime, or the wrong tax status in the last pay run.
We recommend that you print the payslips for the employees whose pay needs correcting first. Use the previous and current payslips, along with the detailed report, to compare their pay before and after you made changes.
Explain a correction
When you complete your pay run, we send an online submission to Revenue. This happens every time you pay employees. When you make changes to a completed pay run, select whether to show the difference in the next pay run.
NOTE:
Please note the following examples only apply if you select Show in the next pay run option when saving corrections.
You still need to report the changes to Revenue.
- Select the Pay Runs tab, then the relevant pay run you previously edited.
- Under ROS Real Time Reporting, a warning message appears advising you to resubmit.
- Enter or check your certificate details, then click Resubmit.
Deductions examples:
Scenario 1 - Pay was deducted, and the employee was paid the correct amount in that pay period
Your employee Sam notices a deduction on their payslip for Month 4 that they were not expecting.
You compare payslips from before and after the correction. You find a deduction added to Sam's pay in Month 3.
However, this happened:
- After the pay run was completed
- The submission was sent to ROS
- Before pay day for Month 3
Sam had an updated payslip for Month 3, and his pay was correct.
In Month 4, the correction shows for the missing deduction in Month 3. You paid Sam the correct amount at the time. You added a negative deduction to reverse the correction. The deduction still appears on Sam's payslip for Month 4.
Scenario 2 - Pay was deducted, and the employee's pay was amended in the following pay period
Your employee Charlie notices a deduction on their payslip in Month 4 that they were not expecting.
You compare payslips from before and after the correction. You find a deduction added to the pay run in Month 3.
However, this was:
- After the pay run was complete
- The submission was sent to ROS
- After pay day for Month 3
In Month 4, a correction appears on the payslip. You paid the wrong amount in Month 3. You don’t need a reversal.
You overpaid Charlie in Month 3. The deduction is in Month 4 to catch up.
Payments examples:
Scenario 3 - Pay was increased, and the employee was paid the correct amount in that pay period
Your employee Alex notices an extra payment showing on their payslip in Month 2 that they weren't expecting.
You compare payslips from before and after the correction. You find a payment for overtime was missed from Alex's pay in Month 1.
However, this was:
- After the pay run was complete
- After the submission to ROS
- Before pay day for Month 1
Alex received the correct amount and was sent an updated payslip for Month 1.
In Month 2, the correction shows for the missing payment for Month 1. You paid Alex the correct amount at the time. You added a net deduction to reverse the correction. The payment still appears on Alex's payslip for Month 2.
Scenario 4 - Pay was increased, and the employee's pay was amended in the following pay period
Your employee Jordan notices an extra payment showing on their payslip that they weren't expecting.
You compare payslips from before and after the correction. You find a payment for overtime was missed from Jordan's pay for Month 1.
However, this was:
- After the pay run was completed
- After the submission was sent to ROS
- After pay day for Month 1
Jordan didn’t receive the correct amount in Month 1. We add the correct amount to their pay for Month 2. You don’t reverse it.
You underpaid Jordan in Month 1. The deduction is in Month 2 to catch up.
Resources for employees
Here's a handy guide you can give to your employees to help them understand a correction.
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