| | Correct a completed pay run |
| Description | Once you've completed a pay run in Sage Payroll, you may need to make changes. For example, you may have forgotten to pay overtime to an employee. You may have paid an employee using the wrong tax code.
 NOTE: Read our article Change an employee's tax details within the Edit Pay stage of a pay run. This article explains how to make these corrections and the impact on your future pay runs. The procedure below is the same regardless of the pay period you are correcting. Correct a week 1 error with the same procedure you correct a week 42 error. NOTE: If you have missed a new employee off the pay run, read our article Add an employee to a completed pay run. |
| Resolution | Before you edit a completed pay run
We recommend that:- You print payslips for any employees whose pay you're changing. For steps on how to do this, read our article Payslips.
- Print the P32 employer payment record for the month or quarter the pay run relates to. This allows you to compare the values before and after the changes. For steps on how to do this, read our help article The P32 employer payment record.
When you edit a completed pay run, payroll will recalculate any difference in PAYE or NI. It will also calculate the difference the adjustments made to the employee's net pay. This may result in a higher or lower net pay for that particular period. You can pay or deduct the difference from the employee in the next pay run. Depending on the circumstances at the time, you may or may not want to pay or deduct the difference. Read through the examples below and decide which option suits your circumstances. NOTE: You may have more than one employee to correct. You may want to show the difference in net pay for some employees but not for others. In this case, split the employees into 2 groups. Run through the whole procedure for the first group (correction to show). Then run through the procedure for the second group (no correction shown). There may be times when you do not want the correction payment or deduction to show in the next pay period. For example, your employee, Alex, received their usual pay in month 11. After you complete the pay run, you discover a missing overtime payment for Alex that you need to add. You edit the month 11 pay run to include the overtime and provide Alex with a new payslip. Alex receives the correct pay (including the overtime). In this example, Alex received the right pay in month 11, so you don't want to adjust their pay again in month 12. You will select Do not show difference in the next pay run. Confirmation of your changes show on the Payroll Summary tab. Also on the Completed Pay Run window. There may be times when you do want the correction to apply in the next pay run. For example, your employee, Jordan, received their usual pay in month 1. After you complete the pay run, you discover a missing overtime payment for Jordan that you need to add. You edit the month 1 pay run to include Jordan's overtime. You have already paid Jordan the original amount, so you agree to include the overtime payment in month 2. In this example, the employee received the wrong pay in month 1. You want to add the corrected amount to the employee's next pay period. You will select Show difference in the next pay run. This will ensure the employee gets the right Net pay in that period. The correction also shows on the payslip. Check The Full Payment Submission (FPS) and P32 report of the next period (Month 2 in the example). They include details of the correction. If you need to correct any errors or make any adjustments, edit your payroll. An adjusted Full Payment Submission (FPS) submits to HMRC from payroll. Changes to Tax Code, Week1/Month1, NI Category or On Trade Dispute options, only applies to the pay run you edit. For a permanent change, make sure you update the employee record. Changes to Directorship Details apply to the pay run you are editing and all following pay runs. Any changes apply as soon as you make them. To edit absences- Select the Pay Runs tab, then the relevant completed pay run.
- From the Edit pay run drop-down menu, select Edit absences.
- Select the checkbox to confirm you understand the impact of editing a pay run, then Confirm.
- From the Edit absences window, you can make any required changes. Any changes you make will save immediately.
- When you have finished editing absences, select Close.
NOTE: Any difference in net pay due to the absence change will show in the employee pay window in the next pay run. This will show as a correction deduction or correction payment which you can remove. Read section 'There is an unwanted correction in the employee record' of this article.
To edit pay- Select the Pay Runs tab, then the relevant completed pay run.
- From the Edit pay run drop-down menu, select Edit pay.
- Select the checkbox to confirm you understand the impact of editing a pay run, then Confirm.
- From the edit pay window, select the employee you need to update and make any required changes.
- If applicable, select the next employee and make the required changes.
- Once you have made changes, select Save corrections.
- Decide if you want the changes to show in the next pay run or not. Select the appropriate option.
- Select Next.
- If you are happy submitting the FPS using your currently saved HMRC credentials, go to step 12.
- If you need to change your HMRC credentials, untick Use saved credentials?
- Enter your HMRC User ID and Password.
- Select Confirm.
Your updated FPS now submits to HMRC. You will see the successful submission confirmed on the Summary screen. Your next P32 will show any in the original and edited values. Please read our article The P32 Employer Payment Record. There may be times when you have included the correction in the next pay period but do not want it to be there. For example, your employee, Alex, received their usual pay in month 1. After you complete the pay run, you discover a missing overtime payment for Alex that you need to add. You edit the month 1 pay run to include the overtime and provide Alex with a new payslip. You are in time to pay Alex the correct pay including overtime. In error, you select Show difference in the next pay run. This results in an unwanted correction showing in the current pay run. In our example, Alex received the right pay in month 1, so you don't want to adjust his pay again in month 2. You must remove the correction from the employee's pay and from their payslip. We call this reversing the correction. Read how to reverse correction deductions and payments: You may have run your weekly or monthly payroll with an incorrect date. The impact of doing this will depend on the date you have used. NOTE: Once your pay run has updated, there is nothing that can undo the updated payroll. Possible impactsYou may have used a date that falls outside the desired tax week or month. This means the employee's tax calculation is not correct. You may have used a date that falls within the desired tax week or month. The impact will be on how statutory payments calculate. For reference, get our Payroll tax calendar 2023/2024 (opens in new tab). To check which of the scenarios applies to youSelect the Pay Runs tab. In the pay run list, look for missing weekly or monthly pay runs. Example 1: Your weekly pay runs have no weeks missing. You have used a date that falls within the required tax week. - If you have no employees on statutory payments (SSP, SMP) there is no harm done. Next pay run, make sure the date is set to the required date
- If you do have employees on statutory payments (SSP, SMP) the payment will calculate up to the payment date. This will result in a higher or lower-than-expected payment
- The statutory amount paid in the next pay run "corrects". This means the employee will be no better or worse off over the 2 pay periods.
Example 2: Your weekly pay runs show week 1, week 2, then week 4, you have used a week 4 date instead of a week 3 date. You have used a date outside of the desired tax week. To correct the payroll- Get a copy of the payslips and detailed report for the affected pay period.
- Move the pay date back to the missed week
- Select Settings, then Pay Day Settings
- Select View Pay Calendar
- Tick the box Show pay days dated earlier than the current pay run
- Select the missing pay period. Use the correct pay date.
- Select Make this the current pay run and Save
- Process the pay run as usual.
NOTE: If you know the next pay period values, you can carry on with the rest of the steps. Otherwise, start at step 4 when you know the next pay run figures. - Edit the incorrect pay run with the correct values.
- Work through this current articles' section To edit absences.
- Work through this current articles' section To edit pay.
NOTE: When you select Save Corrections, select Do not show difference in the next pay run.
- Get your payslips and reports as usual. The PAYE and net pay for the employees will be correct.
You may still see corrections in your employee's pay in your next pay run. Read our articles on how to reverse an unwanted payment or deduction: Your FPS reports the corrections to HMRC. You will see the change on the P32. We recommend paying HMRC the values on the P32. |
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