Making corrections to a previous pay period (in Sage Payroll 2019)
Making corrections to a previous pay period (in Sage Payroll 2019)
We all know, mistakes can happen, and processing payroll is no exception. For example, you may have recorded an overpayment to an employee in your software or entered the wrong finish date for a leaver.
This article explains how to handle corrections in Sage Payroll 2019 if you’ve already sent a payroll submission to Revenue for the relevant period the issue occurred in.
If you need to make corrections to values in the current pay period, please ignore the steps detailed in this article. Instead you should refer to article 6910 for guidance.
If an employee has been overpaid
You shouldn’t do any manual adjustments in Sage Payroll. Instead the correction to recoup this overpayment should be made in the next pay run. Here is a example of this:
John normally gets €500 gross pay per week. In week 1, John was out sick for one day. His employer doesn’t pay him for sick leave so John should only have been paid €400. However, the payroll operator wasn’t informed of this on time and so John was paid the full €500.
John’s employer must recoup the overpayment of €100 in the next pay run. John gets paid €500 weekly, so in week 2 John’s gross pay will be reduced to €400. This is the amount John was actually paid each week.
If an employee has been underpaid
You shouldn’t do any manual adjustments in Sage Payroll. Instead the correction of the underpayment should be made in the next pay run. Here is a example of this:
Mary normally gets €500 per week. In week 1, Mary worked overtime which meant that she should have been paid an additional €100. The payroll operator wasn’t informed of this on time and so Mary was only paid €500 instead of €600.
Mary’s employer has agreed to pay the €100 in the next pay run. Mary’s gross pay is €500 per week, so her gross pay is increased to €600 in week 2 to correct the underpayment. This is the amount that Mary was actually paid in each week.
Incorrect details on a submission
If you report incorrect values on a submission that can’t be rectified in the next pay run by either increasing or decreasing the employee’s gross pay, then you must make the necessary amendments to the relevant submission on the Revenue website to rectify the error. You should make any corrections required to the submission before the return due date to avoid penalties being applied.
Here are two examples of errors that require corrections be made to the original submission:
- Patrick was paid €500 in week 1. However, the employer incorrectly reported his pay as €5000 in the payroll submission.
- Jane left the company on 04/01/2019. However, the employer incorrectly reported her finish date as 04/10/2019 in the payroll submission.
Once you’ve made the necessary corrections to the submission in the Revenue website, you can then make the corresponding changes to your data in Sage Payroll. Please contact us on 051-395900 for further assistance with doing this.
