This article does not apply to reversing time entries created in Project Management field reports by entering a negative time entry as long as the negative entries are to correct time for the same period end date and check sequence.

We do not recommend the use of negative time entries. To correct time we recommend using Change posted time or Void checks. See article How does Change Posted Time in Payroll work? for details on how to use Change Posted Time to correct payroll entries.

When your check does not meet the criteria for Change Posted Time and the check has a status of accrued, printed, or posted, void the check to make corrections. For information on how to use Void Checks see How do I void a Payroll check or direct deposit?.

When you use negative time entries to correct errors made on previous checks, you may cause more serious problems than the original errors. For example, when you process a check with negative earnings and the net amount of the check is negative, the following occurs:

• Deductions and fringes do not calculate.
• Taxes do not calculate, but a negative taxable and subject-to are created.
• No negative burden detail records are created.
• Negative earnings may correct errors in costing time entries to a specific job. However, labor burden to these same jobs may be overstated.
• Employee taxable and subject-to amounts may be incorrect which can cause future taxes to calculate incorrectly for the employee.

When you process a check with negative earnings and the net amount of the check is positive, the following occurs:.

• Taxes, burden, deductions, and fringes calculate incorrectly when the state or local tax authority on the current check differs from the state on the original check.
• Negative taxes do not calculate.
• An incorrect tax calculation causes an overstatement of costs in Job Cost.

Note: When you void checks for editing purposes, you have the option to retain a voided check as a new check so that you may edit and re-issue it without reentry of the earnings information. Remember to verify the tax, fringe, deduction, and burden amounts match the amounts from the original check after you correct the errors and process the check. If the employee has already been paid see How do I correct a payroll check with incorrect earnings when I have already paid the employee?.