Revised: 08/24/2012
An employee's earnings may be adjusted in the next regular payroll run or in Manual Check Processing.
Which process to use would depend on circumstances, timing and company policy.
Adjustment should be done in the next regular payroll if:
The adjustment will reduce the employee's paid amount, and the original incorrect pay has already been deposited or cashed.
The employer wants the adjustment to show on the employee's next regular paycheck.
Go to Adjustment in Regular Payroll Process
Adjustment should be done in Manual Check Processing if:
The original incorrect check has been returned to the payroll department and the new check should be issued immediately. See: Void and Reissue Check
The original check has been lost. A new check for the same amount needs to be created. See: Void and Reissue Check
Adjusting off a deduction that should not have been taken, especially important for local taxes when an employee moved to a new taxing district or any other deduction that the employee's gross wages for the deduction period will be reported. See: How to Correct Payroll Deductions with Manual Check Processing
Employer wants to give the employee a separate check for this adjustment. Such as when hours are missing from original pay. See How to Process a Manual Payroll Check
Adjustment may be done in either the next regular payroll run or in Manual Check Processing if:
The adjustment has zero effect on the amount paid. Such as moving time coded as regular hourly pay to vacation.
The adjustment will create a positive check amount.
Adjustment in Regular Payroll Process
To adjust an employee's amount paid from a previous pay period, go to Activities>>Time Card Entry.
Select the Employee No.
When the Earning Code was a hourly pay type:
Enter the Time Card Date used for the original pay
Enter the Earning Code used for the original pay
Enter the Hours to be adjusted as a negative number
For Example: To reduce Hourly by 8 hours, enter -8.0000.
Enter the Rate used for the original pay as a positive number
For hourly pay types, the rate should always be a positive number as negative hours times a positive rate will calculate as a reduction to the amount paid.
Generally, the same general ledger information for the following fields should be selected as the original pay. (Some fields are not available dependent upon Payroll Settings or selections made)
Department Code
Auto Group
Inter-Fund Code
General Ledger Account Number
To add back the correct hours to a different code such as Sick:
Enter the Time Card Date used in the original pay
Enter the Earning Code that should now be reported for those hours
Enter the Hours to be reported if using an hourly type, or Zero for a Salary type
Enter the new Rate or Salary amount
Enter the correct General Ledger information. This can be a change from the original general ledger information processed.
When the original Earning Code was a Salary pay type:
Enter the Time Card Date used for the original pay
Enter the Earning Code used for the original pay
Enter zero Hours
Enter the Rate used for the original pay, generally, as a negative amount
A negative rate amount will reduce the pay amount
A positive rate amount will increase the pay amount
Enter the same General Ledger information used for the original pay
To add back the amount to a different code such as Sick:
Enter the Time Card Date used for the original pay
Enter the Earning Code that should now be reported for the pay amount
Enter zero Hours
Enter the new salary amount in Rate
Enter the correct General Ledger information. This can be a change from the original general ledger information processed.
IMPORTANT NOTE: All transaction dates used for the General Ledger are based on the pay period and the pay date.
If Payroll is set for cash basis, all general ledger dates are the pay date.
With Accrual basis, all wage expense dates are based on the Accrual date and pay period end dates in the Paydate Master. General Ledger date information is not based directly on the timecard date.
The Void and create a new corrected pay check is done in Manual Check Processing. This is always done as 2 steps:
Void the original check. See How to Void a Payroll Check. The voided check must be processed and posted before entering the information for the new check.
Create the new reissue check. See How to Process a Manual Payroll Check.
Note: Print the Pre Check Writing Report and Check Register from the processing of the Void. Use these reports to enter and check the data entered for the replacement check.