You've just finished a draft pay and sent it but now you've noticed you entered the wrong pay date, or an employee who has received their payslip realises that an overtime payment has been missed. The pay has been sent - what are your options? Fortunately, PayHero makes it easy to fix any mistakes.
If you've either missed some hours or earnings out of an employee's pay or paid them too much, you can run a One Off Pay for that employee, and either include the additional earnings or apply a Time Credit to recoup the overpayment in future pays. Provided the start and end dates are the same as the original pay the employee's tax will be calculated based on their total earnings for the period overall.
If you have some larger amendments to be made to the original pay, you're still able to do so by adjusting the sent pay. See information on each of these options below, or jump to a section:
One Off Pay for Underpayments
For employees who have been underpaid, create a One Off Pay with the same Start Date and End Date as the original pay, and a Pay Date of today (the day you intend to pay them).
Add the affected employees into the pay. Any missed hours from the timesheets or missed leave requests for the period will be picked up automatically. Alternatively, you can add missed details directly into the pay.
Send and process this pay as normal to resolve the additional payment amounts.
One Off Pay for Overpayments
For employees who have been overpaid and for whom you'd like to apply a time credit to, create a One Off Pay with the same Start Date and End Date as the original pay, and a Pay Date of today.
Time credits can either be added into the employee's timesheets and will be picked up by this pay, or they can be entered directly into the pay. Add the time credits to the employee's timesheets if desired first, then add the employee to the one off pay.
Once you've applied the time credits, an additional line will be included in the pay setting the gross total to $0 - you can then send the pay as normal by clicking Send Pay, or using the Mark as Sent option to finish processing. A pre-tax deduction will be automatically added to the employee's Default Pay to deduct the overpayment from their future pays.
Using Mark as Sent will prevent PayHero from taking any extra actions when moving the pay across to Payroll > Sent. This will avoid sending out payslips to staff, submitting a filing to IRD, and creating an invoice in Xero (if integrated). This option may be preferable as a result. Learn more here: What is the difference between sending a pay, resending a pay, and marking a pay as sent?
See the Time Credits & Correcting Overpayments article for further details on this approach.
Amending the Original Pay
In some cases, you may prefer to correct the original pay instead. Keep in mind that this approach will require that you manually handle any changes to amounts owing to employees, IRD, or other payees.
Moving Sent Pays to Draft
Under Payroll > Sent select the checkbox of the sent pay you need to amend and select Mark As Draft through the button.
Selecting the Mark as Draft option will display the following pop-up (the warning that appears may vary depending on your selected payment method).
After selecting Mark as Draft you will be notified the pay has been successfully moved into a draft stage and have the option to immediately view your draft pays.
Before making changes to a previously sent pay, it's recommended to download the Pay Summary Report and/or Employee Pay Details Report for reference of what was originally processed.
Editing the Pay
Viewing Payroll > Draft you can edit your pay as required in much the same way as processing a pay regularly. More information on this can be found in our Processing a Pay Run article.
If you need to apply any changes which have been made in the Timesheets, Leave, or Employee records you'll need to remove the affected employee from the draft pay and then re-add them for those changes to be picked up.
Once all the desired changes have been made you have two options for resending the pay, either Resend Pay or Mark as Sent.
Deleting the Pay
If the mistake made relates to the pay period being covered (the start and end date), you'll need to delete the pay and recreate it with the correct dates. From the Draft Pay screen, click on the button and select Delete Pay. PayHero will automatically file an amendment with the IRD if a pay is deleted.
Note that once a pay is deleted it cannot be recovered.
Resending/Marking the Pay as Sent
Resend Pay
Resend pay is a more automated approach, once you have made the appropriate changes and select Resend Pay you will see a confirmation pop-up. This pop-up will provide information around what actions will be taken as well as confirming that no payslips will be sent out. Clicking on Resend Pay here will finalise any changes you've made to the pay and process the actions mentioned in the confirmation box.
Mark as Sent
Your other option to process the pay is to select the Mark as Sent option from the menu and is the more manual approach but better suited for certain situations.
Selecting Mark as Sent will provide a pop-up detailing what won't be processed. However, if you want some of these processes to occur but not others, the actions can be individually selected from the Sent Pays tab.
Mark as Sent won't file an amendment with the IRD and you will need to manually resubmit to the IRD from the Unpaid Tax section. Additional information on re-submissions can be found in our Payday Filing article.
For more information on the differences between selecting Mark as Sent and Resending a pay, you can refer to our article: What is the difference between sending a pay, resending a pay, and marking a pay as sent?
Resolving Differences in Payments
If an employee has already been paid and the amount was different to the new total after any changes that were made, the difference will either need to be paid or recouped from the employee manually.
If you pay the IRD at the same time as paying your employees you'll also need to pay any difference in the tax amounts to the IRD. Differences arising from amendments can be reviewed through the Unpaid Tax tab.
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