Solution Properties
Solution ID:
222924550020699
Last Modified Date:
Fri Jul 14 16:11:37 UTC 2023
Taxonomy Path:
Category//Transactions//Corrections
Author:
sageadmin
How do I correct a payroll check with incorrect earnings when I have already paid the employee?
Description
Cause
Resolution
 NOTE: 
  • This process allows the check to be updated while keeping the net pay for the same as when the check was issued to match your bank.
  • This process is very useful when you need reports for a period to reflect the correct information and the changes will result in a different net pay, updated burden amounts, or changes to Union and Certified payroll.

Considerations and Tips

  • To reissue a check that was entered correctly, refer to article How do I reissue a lost or damaged payroll check?
  • If the check is for a prior year, refer to article How do I void and reissue a Payroll check for the prior year? (For error correction) for additional considerations and processes
  • The tax amounts may change from what they were on the original check. If they differ, consult a certified tax advisor for your company to determine if any corrected tax forms need to be submitted
  • The Check Activity with Detail and Time Sheet reports from the Pay Period Processing are often useful reports to run before changes so you can review the original check information
  • If the process results in the employee owing wages you may need to work out a re-payment agreement with the employee similar to a pay advance or loan

Step 1: Create a back pay reimbursement deduction

  1. From the Payroll Setup menu, select Deductions.
  2. Enter Back Pay, press TAB, then enter a description and press ENTER.
  3. In the Deduction type list, select Normal.
  4. In the Calc method list, select Flat amt.
  5. Add the appropriate GL accounts.
  6. Click Save and then click Close.

Step 2: Void the check in Payroll

In Payroll, void the check and select the Retain check as New check box to keep the time entries from the check.
See How do I void a Payroll check or direct deposit?" for more information and considerations.

Step 3: Reissue the check and make corrections

  1. From the Tasks menu, select Enter Checks.
  2. Select View, enter the Period begin date, and click OK.
  3. Enter the Employee and Period end date,
  4. Make changes to correct the check.
  5. Process the check by clicking Process at the bottom.
  6. Click Check Info, note the Check net amount and click OK.
    Note: If the original check was a Direct Deposit, verify that the Direct Deposit Deduction amount matches the original Direct Deposit deduction amounts.
  7. Click Deduct, then List, and select Back Pay.
  8. Enter the difference between the current check net and the original check net in the Amount column.
    Note: If the current net pay is lower than the original net pay, this amount will be negative.
  9. Press TAB and then Process the check again.
  10. Click Check Info and verify that the check net matches the original check net, then click Cancel.
  11. Print the check:
    • If the check was a printed check, click Manual. Type the original check number and original check date.
    • If the check was Direct Deposit you will generate a Direct Deposit NACHA file following your normal process. However, you will not upload this file to the bank as the funds have already been processed on the original check.
  12. Click OK twice, then Click Accept check, and Finish.
  13. Click Tasks and then Post Checks

Step 4: Reverse the back pay deduction as follows

  1. From the Tasks menu, select Enter Checks.
  2. Enter the Employee and Period end date.
  3. Click Deduct, then List and select Back Pay.
  4. Type the amount owed to or by the employee, reversing the amount entered in Back Pay deduction.
  5. Click Accept check and then click Finish.

[BCB:156:Chat 300 CRE US:ECB]



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