What creates a correctionYou'll see a correction on your current pay run when you:
- Change the amount paid to employee
- Add an absence for a previous period
- Add a pension with a staging date in a previous pay run
The change could result in a payment or a deduction on your current pay run. A payment means you increased your employee's pay. A deduction happens when you reduce an employee's pay. Find the cause of a correctionWe recommend that you keep saved copies of your reports to compare the employees’ net pay. It helps find the period that changed. When you save a report, it doesn't update when changes happen to a pay run. As soon as you run the report again, it will show the updated amounts. We recommend you export and save a copy of each report listed below when you complete each pay run: - Detailed report
- Payslip summary
- Employee net pay
In the example below we will use the detailed report. This shows payments, deductions, and Employee Net Pay. - Open the saved report you have for the most recent pay period.
- Re-run the report for the same period by selecting Pay Runs then select the pay run you want to report on.
- Select Open the detailed report.
- Compare the net pay on both copies of your reports.
If the net pay does not match exactly, this is the period where the change happened. 
 NOTE: You may need to compare the reports for each period until you find the difference.
You can find a list of other payslip and employee net pay reports below. | Report name | How to run this report | Detailed report | Select Pay Runs then on the right side of the screen select the pay run you want to report on. Towards the top left corner of the screen select open the detailed report. | | Payslip Summary | Select Reporting then Payslip Summary. Use the drop-downs to select the correct Tax Year, Frequency and Period you want to re-run. Select Generate. You can create a PDF copy of the report by selecting Export then PDF. | | Employee Net Pay | Select Reporting then Employee Net Pay. Use the drop-downs to select the correct Tax Year, Frequency and Period you want to re-run. Select Generate. You can create a PDF copy of the report by selecting Export then PDF. |
If you cannot find copies of your needed reports, you can use the FPS to find the information you need. To see the values from the FPS, you will need to view it as a .xml file. To do this: Select Pay Runs then select the pay run you want to check. In the HMRC Real Time Information (RTI) Scheme section select View FPS then Download XML. This saves to your downloads folder with a name that reflects the period. For example: FPS-2021-2022-Month2.xml. If you're using Windows, open the file using Internet Explorer or Edge. Find the employee. Select Ctrl+F on your keyboard. Enter the employee's surname into the Find box. The employee name highlights. Compare the amount in the <TaxablePay> field to your employee's payslip. We recommend comparing the <TaxablePay> field as the FPS doesn't include employee Net Pay.
In the example above, the taxable pay on the FPS.xml is 1500. The value on the employee's is 1200 gross. This means you reduced the employee's salary by 300. This happened after the payroll was first completed. As the salary is a gross payment (subject to tax and NI), the correction is only 192. The payroll allows for the tax and NI calculation.
How corrections affect the P32 reportThe values on your P32 report complete when you send your Full Payment Submission (FPS) to HMRC. If you correct a completed pay run, the corrections don't affect the P32 totals this period. The changes will only affect the liability values for the next P32 period. What to do if you see a correctionThe steps you need to take depend on what your employee actually received. Check your bank transactions. Confirm if you paid the corrected amount to the employee or whether you need to correct pay in this pay run. There may be times when you need to reverse a correction. For example, if the employee has already received the correct payment. Or if you edited a previous pay run and need to change it back. You must then add a business expense or net deduction. This is known as reversing a correction. Entering the pay in this way ensures the reversal is not subject to tax and NI. Read more: If the employee received the wrong pay, the correction shows in the current pay run. Payroll adds the correction for you, to ensure the employee gets the right Net pay this period. There are no corrections showing, but an employee's pay is incorrectIf the values you've processed are not correct and need to change after you've completed a pay run, edit the previous pay run. This will result in a correction appearing in the current pay run. Read more about how to edit a completed pay run. Next stepsOnce you have made the correction on your pay run, you may need to update other systems. Full Payment Submission (FPS)If you have made a correction to a pay run, a corrected FPS transmits to HMRC as part of the process. It updates all the year-to-date values at HMRC. Employer Payment Summary (EPS)You can only submit an EPS from the 20th of the current month until the 19th of the following month. For example, make the Month 1 submissions between the 20th of April and the 19th of May. As the EPS is cumulative, any changes that affect the EPS are included when you next submit it. Nest PensionsYo may make a payroll change after you've uploaded your submission files to NEST. You must download a corrected pension file and upload it to NEST. The corrected file shows the updated values, including any corrections. Read more about Nest Corrections. Smart PensionsYou cannot resubmit pension contribution details to Smart Pensions. You may have made a change to your pay run after you've submitted to Smart Pensions. The system includes the difference between the original and corrected pension next submission. Integration with Accounting You may make a correction before the online payslips are published. The corrected payslip will automatically be published on the normal publish date. If the publish date has passed, then republish any payslips that have changed. To republish payslips From the Summary tab, select Publish Payslips. A warning icon displays along with the following message: You need to publish X corrected payslip(s). Doing this might also publish updated P60s if the corrections relate to earlier tax years. Your corrected payslips upload, overwriting the existing ones.
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