Making adjustments to processed pays

Create an Adjustment

When you've processed pay, you may later discover an error that was accidentally overlooked.

Don't stress! Errors can be easily adjusted.

Two common examples of errors are:

  • Underpayment, where the employee was paid less than intended.
    • In this case, once an adjustment is made it will produce a new draft adjustment payslip, and once generated a new ABA file is created.
  • Overpayment, where the employee was paid more than intended.

    To correct a pay you have 2 options 
    • Create an adjustment - this option may suit employers who wish to correct employee payslips for invoicing purposes. We recommend recovering the overpaid monies external to foundU.
    • Process a Deduction - you can process a deduction on the employee's upcoming payslip or set up a recurring deduction to recoup in instalments.
  Please Note: If you choose to create an adjustment for an overpayment, we do not recommend a deduction be applied to recover the funds as this may create inaccurate reporting

Adjustments for underpayments
  1. In the quick menu navigate to Payroll > Pay
  2. Select the Payslips tab which contains the processed pays and select the period ending date.
  3. Find the relevant payslip and click Action > Create Adjustment.

  4. Under the Position details, click the Minus symbol to minus out the original hours. You will see all figures turn into negatives.
  5. Click Add New Position and fill in the Operation, State, Position and Days worked. Then click Add Pay Item and complete details for the correct pay information. i.e. Normal, Overtime etc. 

  6. Once you've made the changes, scroll to the bottom and first click Calculate Totals. This will calculate all the adjustments only. Superannuation and Tax will automatically adjust correctly. Then click Preview payslip and scroll to the bottom of the page to review your changes.
    Finally once you're happy with the changes made click Create Adjustment

     

  7. Provide a reason for the adjustment, and click Save Changes.
  8. A new draft paycycle will be created. You can identify it by the 'A' in the payslip ID.
  9. Select the draft payslip and click Generate Selected to process the adjustment.

  10. A new Payslip Adjustment will be sent to the employee portal and new ABA file will be created.
  11. Go to ABA History to access the new file. (You may also like to Merge ABA files).
Adjustments for overpayments
  1. Go to Payroll > Pay
  2. Go to the Payslips tab to view processed pays and select the period ending date.
  3. Find the relevant payslip and click Action > Create Adjustment

  4. Under the Position details, click the Minus symbol to minus the original hours. You will see all figures turn into negatives.
  5. Click Add New Position and fill in the Operation, State, Position and Days worked. Then click Add Pay Item and complete details for the correct pay information. i.e. Normal, Overtime etc. 

  6. Once you've made the changes, scroll to the bottom and first click Calculate Totals. This will calculate all the adjustments only. Superannuation and Tax will automatically adjust correctly. Then click Preview payslip and scroll to the bottom of the page to review your changes.
    Finally once you're happy with the changes made click Create Adjustment


  7. Provide a reason for the adjustment, and click Save Changes. A warning message will display reminding you to process a deduction on the next paycycle, However we recommend you choose the option that works best for your business. These are listed below in the "Methods for collecting overpaid funds" tab.

  8. A new draft paycycle will be created. You can identify it by the 'A' in the payslip ID.
  9. Select the draft payslip and click Generate selected to process the adjustment.
  10. A new Payslip Adjustment will be sent to the employee portal.

  11. You're now able to address the best method for collect the overpaid funds.

 

For those business that use invoicing, you may also like view our Generate, review and issue invoices article for more information.

Methods for collecting overpaid funds
To recoup the funds, please choose one of the three options below.


Option 1:
Collect the funds externally from foundU. (no further action required in platform)

If your business relies heavily on reporting - we recommend you recoup the funds outside of foundU to avoid a double negative in your reports.

Option 2: Process a deduction on the employee's upcoming payslip.

Option 3: Set up a recurring deduction to collect the funds back in instalments.

 

Deductions are not automatic so will need to be applied manually (depending on the option you wish to use to collect the money back).

  If you choose to use a deduction, read our Applying a deduction article for step by step information on how to process.

Was this article helpful?
0 out of 0 found this helpful