Making changes to processed pays - Adjustments & Edits

How to make changes to processed pays

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

Don't stress! Errors can be easily fixed.

The two common examples of errors are:

• Underpayment - when the employee was paid less than intended. 
• Overpayment - when the employee was paid more than intended.

To resolve these errors, you can either edit the existing payslip or create an adjustment payslip to generate a secondary payslip for the pay period.

Want to know the differences between editing a payslip and creating an adjustment? Here are some handy tips:

Editing payslips:

• Can be done before or after pay has been run
• The ABA file is automatically created
• This updates the current payslip, employees will only be able to access the current version

Creating adjustments:

• Can only be used after payroll has been processed
• Retains the original payslip and creates a new adjustment payslip
• You can use negative amounts
• Provides an audit trail of the changes made
• Sits as a draft payslip that you will need to generate

Keep reading for more information on how to make changes to your processed payslips.

  For more detailed information, watch our short video (5 min) below, we explain more at the 1 min mark.

Editing payslips

There may be a time when you need to edit a payslip instead of creating an adjustment. An example of this is you need to edit or cash out leave hours, apply a deduction or apply a different cost code. 

You are able to edit a payslip by doing the following:

1. In the quick menu navigate to Payroll > Pay.
2. Select the relevant filters to locate the desired payslip.
3. Select the down arrow next to the payslip ID > Edit.
   
   

For more in-depth information on the different types of edits, please refer to our helpful Processing pay for your employees article. 

Adjustments for underpayments

To correct an underpayment via an adjustment you will need to do the following:

1. Create an adjustment - this option may suit employers who wish to correct employee payslips for invoicing purposes. 
2. Process the ABA file with the additional amount to the employee. 

To create an adjustment for an underpayment:

1. In the quick menu navigate to Payroll > Pay.
2. Select the Generated payslips tab which contains the processed pays and select the period ending date.
3. Find the relevant payslip and select the down arrow next to the payslip ID > Create Adjustment.
   
   

   

4. Under the Position details, click the Minus symbol to minus out the original hours. You will see the Hours and Amount turn into a negative amount.
   
   
5. Click + Add New Position and fill in the Operation, State, Position and Days Worked. Then click + Add Pay Rate and complete the details for the correct pay information. i.e. Normal, Overtime etc.
   
   
6. Once you've made the relevant changes, scroll to the bottom and click Calculate Totals. This will calculate the adjustments only. The Superannuation and Tax will automatically adjust. Then click Preview Payslip and scroll to the bottom of the page to review your changes. Finally, once you have ensured the correct changes have been made click Create Adjustment.
   
   
7. Provide a reason for the adjustment, and click Save Changes.
8. A new draft pay cycle will be created. You can identify it by the 'A' in the payslip ID.
   
   
   
     Please note: Ensure to also manually edit any leave entitlements if these are impacted by the change made.
   
   
9. Select the draft payslip and click Generate to process the adjustment.
   
   

   

10. A new payslip adjustment will be sent to the Employee Portal and a new ABA file with the additional amount will be created.
11. Go to ABA History to access the new file. (You may also like to Merge ABA files).

Adjustments for overpayments

To correct an overpayment via an adjustment you will need to: 

1. Create an adjustment - this option may suit employers who wish to correct employee payslips for invoicing purposes. 
2. If the employee is not paying the monies back directly, you will need to 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. We recommend recouping the funds directly from the employee.

To create an adjustment for an overpayment:

1. In the quick menu navigate to Payroll > Pay.
2. Select the Generated payslips tab which contains the processed pays and select the period ending date.
3. Find the relevant payslip and select the down arrow next to the payslip ID > Create Adjustment.
   
   

   

4. Under the Position details, click the Minus symbol to minus out the original hours. You will see the Hours and Amount turn into a negative amount.
5. Click + Add New Position and fill in the Operation, State, Position and Days Worked. Then click + Add Pay Rate and complete the details for the correct pay information. i.e. Normal, Overtime etc.
   
   
6. Once you've made the relevant changes, scroll to the bottom and click Calculate Totals. This will calculate the adjustments only. The Superannuation and Tax will automatically adjust. Then click Preview Payslip and scroll to the bottom of the page to review your changes. Finally, once you have ensured the correct changes have been made click Create Adjustment.
   
   
7. Provide a reason for the adjustment, and click Save Changes. A message will display reminding you to process a deduction on the next pay cycle, 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 payslip 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 adjustment payslip will be sent to the Employee Portal.

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

  For those businesses that use invoicing, you may also like to 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 is required on the 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.

  Please note: 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 Deduction article for step-by-step information on how to process Deductions.