A change made in a previous pay run can result in a correction payment showing in the current pay run.

You can't delete a correction. If you don't need the correction, you can reverse it. To do this, you create a negative payment for the same amount.

When to reverse a correction payment

You will need to do this when you have corrected a completed pay run for an employee in a previous pay period. This resulted in their increased pay and you paid the employee the higher amount in that pay period.

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.

Alex receives the correct pay (including the overtime).

In month 2, you reverse the correction as you have already paid Alex the correct amount.

Reverse the correction payment

1. Process your pay run up to the Edit stage.
2. Choose New Payment then Add a New Payment.
3. Choose Expenses as the payment category, and Business Expenses as the deduction type.
4. Enter a name and description for the payment, such as Manual correction reversal.
5. Make the value the same amount as the correction amount. Make it a negative amount, so that it reverses the Correction.

Adjust the journal sent to Accounting

You may subscribe to Sage Accounting and automatically post salary journals from Payroll.

Reversing the correction deduction also creates a difference in your salary journal:

• The totals in your payroll
• The totals posted to your accounts

This difference is equal to the correction amount.

Check the salary journals