Sometimes, you might make a mistake in your processing which you need to correct. For example, you forgot to pay overtime to an employee, or paid too much commission.

To put this right you can either use rollback to correct a previous payroll run, or make the correction in the next pay period.

If you decide to make the adjustment in the next normal pay period, you don't need to submit an FPS adjustment. The corrected values are picked up in the normal FPS and you should pay HMRC the value as shown on your P32.

 NOTE: You may also need to make a adjustment to reverse previous processing, for example you paid overtime last week in error. 

To make the adjustment clear on the employee's payslip, you can set up a payment or deduction specifically for the adjustment. You need to process this the same way it was paid or deducted originally. Check the tables below for further information.

If you set up a new payment or deduction, mirror all other settings from the original payment or deduction being corrected into the new one. For example, if the pension options are selected on the pay element you overpaid with, select these same options on the deduction you correct this with. To check the options selected click Company then Pay Elements, select the relevant pay element and click Edit.

Correct an over-payment

If you've paid an employee too much, you can set up a deduction to correct this in the next period. Set up and assign deductions >

Check the table below for whether the deduction should be set as pre or post tax, based on the settings on the overpayment.

Correct an over-deduction

If you've paid an employee too much, you can set up a deduction to correct this in the next period. Set up and assign payments >

Check the table below for whether the deduction should be set as pre or post tax, based on the settings on the overpayment.

Pensions

If you ever need to process a pension refund, follow the steps in our how to manually process a pension refund through enter payments guide.