Payroll adjustments due to overpayment
Hi Amberdiva
Thanks for your post. Typically if an employee has been overpaid and the wage has been transferred through the bank you wouldn't adjust the pay transaction. This is so the amount transferred matches the pay transaction. To fix the error you would process an adjustment pay if the employee was repaying the overpaid amount or include the adjustment in the following pay if you are withholding the overpaid amount. Again this is so the amount transferred matches the pay transaction.
How you fix your current issue will depend on whether you use bank feeds and how you want to handle the reconciliation of those transactions. Your options are:
- Reverse the second pay and reprocess without the adjustment. You won't be able to match bank feeds because the amounts are different so you'll need to manually reconcile both weeks pay transactions.
- Reprocess the first weeks original pay transaction so that the net amount matches the amount transferred and reverse the new pay. Leave the second week's pay with the adjustment. You'll be able to match bank feeds because the amounts are the same.
Fixing a payroll overpayment or underpayment
Please let me know if you need further help with this.
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