In cases where too many hours, days, or units have been recorded and paid for a timesheet, administrators in PayHero can apply a time credit to correct the overpayment and reflect the intended value. When processed correctly, time credits will automatically deduct the overpaid amounts from the employee's future pays.
Please Note: Time credits should only be used when the employee has already been paid for the time that was incorrectly entered. If the employee hasn't been paid yet, you can edit the time entry instead (Editing & Deleting Time).
Adding Time Credits
To add a time credit, navigate to the Time Summary and click into the employee you wish to credit time for. From the options button in the top right, select 'Add Time Credit'.
In the pop up that appears, you can set the appropriate details.
- Date - Ensure the date the time credit is applied for is the same date the employee was overpaid. For credits which span multiple days, each date will require it's own time credit.
- Credit Hours - Enter the number of hours they were overpaid for on the selected date.
- Work - Select the same work option that the employee was overpaid against.
- Notes - Add any notes to the Time Credit if applicable.
Please Note: The rate applied for the time credit will be influenced by the date and work the time credit is recorded against. PayHero will use these details to identify a time entry falling on the same date for the same work, and will use the pay rate from that time entry as the rate for the time credit.
If there are no matching time entries on that day, PayHero will simply use the current rate for that work.
Viewing Time Credits
Once the credit has been saved there are a number of places which will reflect the credited time.
The amended total hours for the day will be visible from the Work Summary at the bottom of the employee's timesheet:
From the Time Summary overview tab:
And on the Timesheets overview tab:
Editing Time Credits
If you need to make any adjustments to the credit after it has been saved, you can do so by navigating to the employee's timesheets, scrolling to the bottom of the time calendar and clicking the down arrow for the day the credit has been applied to.
In the list of time entries for the day, click the pencil icon on the Credit line to view, edit or delete the time credit.
Creating a One Off Pay
In order to automatically generate a deduction from future pays, you'll first need to create a one off pay to process the time credit. The one off pay needs to be created covering the date range for which the time credit has been added, and affected employees can then be added to that pay.
Please Note: Any custom default payments or deductions which may normally apply for the employee should be removed from the pay.
You can learn how to process a one off pay in our support article here: One Off Pays
Once the employee is added to the one off pay, you'll see a Pay Warning icon and two pay lines.
- Pay Warning - This pay warning is expected and indicates a Time Credit is being applied in the pay and will be deducted from future pays.
- Credit Hours/Units (1) - This will be a negative quantity pay line recorded against the selected Work option that the time credit was recorded against.
- Time Credit (2) - The 'Time Credit' line is added to balance out the negative total and bring the total earnings to $0.
Any other pay lines in the pay such as Tax, should also have a total of $0.
Once all details in the pay total $0, you can send the pay as you would usually by clicking Send Pay or using the Mark as Sent option to finishing processing the one off pay.
Using Mark as Sent will prevent PayHero from taking any external actions when moving the pay across to Payroll > Sent. This will avoid sending out payslips to staff, submitting a filing to IRD as well as creating an invoice in Xero (if integrated).
This option may be preferable as a result and our support article: Processing a Pay Run shows where to find this.
Once you've processed a one off pay for the time credit, the value of the overpayment will be added to the employee's Default Pay tab for automatic deduction from any upcoming pays.
Please Note: The default repayment rate applied will be $50 per pay. If a different rate is required it will need to be adjusted directly from the employee's Default Pay tab. Ensure the rate is set as a negative rate so it's correctly applied as a pre-tax deduction. e.g. -100 for a $100 deduction.
- Rate - The pre-tax deduction rate applied per pay. Set this field as a negative rate for a 'pre-tax deduction'.
- Current Balance - The total amount overpaid to be recouped.
PayHero will automatically include a pre-tax deduction for the employee in the following pay runs until the 'Current Balance' on the employee's Default Pay tab reaches $0. This will apply using the same functionality as Track Balance.