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Correct a mistake in your payroll

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The guide explains how to correct a mistake in Sage 50cloud Payroll.


There may be times when you need to make an adjustment to your payroll or correct a mistake. For example, you may have forgotten to pay overtime to an employee, or you've processed an employee using the wrong NI category or tax code.

To put this right you can either:

  • Go back and process the pay again correctly. If you've already submitted your full payment submission (FPS), you may also need to submit an FPS adjustment to let HMRC know. Or,
  • Make the correction in the next pay period.

Don't worry, correcting payroll is easy to do, we'll go through each step together.


Correcting your payroll

You can use the following options to go back and process your payroll again correctly:

  • Rollback - Ideal for correcting mistakes that affect just one or a small number of employees.
  • Restore - Ideal for when you're moving to a new computer. Restores all your employees data back to how it was at a certain point in time.
  • Recover - Ideal where no back up to restore is available and you need to correct a mistake that affects all or most of your employees.

Once you've corrected the mistake, you then need to submit an FPS as normal. Or, if you've already submitted an FPS for that pay period, you must submit an FPS adjustment.

Correct an employee's pay using rollback

1. Print historical payslips

Before you start, make sure you have details of the employee's original payments. This will help you to calculate any adjustments after you make the correction.

To find this information, you can reprint the employees payslip. Read more >

2. Rollback

You can use the RollBack option to remove an employee's payment history, so you can go back and enter the corrected values. Read more >

3. Enter the corrected values

  1. Click Payroll, then Change Process Date.
  2. Enter the original pay date, then click OK.
  3. Click Enter Payments and enter the corrected values.

    Deductions, such as NI and tax are recalculated automatically.

  4. Click Save / Next, then click Close.
  5. Click Pre-update Reports and select the relevant payslip layout.
  6. Click Preview and check the values are correct, then click Print.
  7. Click Close, then Close.
  8. Click Update Records, then Yes.
  9. Complete the wizard.
  10. Once complete, click OK.

NOTE: You will also need to re-process the statutory payment for any employees that had one processed for the period you have just rolled back. Read more >

4. Submit an FPS or FPS adjustment

  • If you haven't submitted an FPS for this pay period, submit the FPS as normal.
  • Or, if you noticed the mistake after you'd already submitted an FPS for this period, you must submit an FPS adjustment. Find out how >

5. Adjust net pay and HMRC payments

If your employee's net pay has changed as a result of the correction, you need to make sure that you've paid them the correct amount. You should compare the original payslip with the new payslip.

You should also reprint your P32 report and pay HMRC the new corrected amount.

For example, you update your employees on 25th of the month. On 27th, you realise you missed off a bonus payment to one employee. You roll the employee back, add the bonus and update the payroll. You should then submit an FPS adjustment. The corrected figures are submitted to HMRC at this point, and this is what they'll expect payment for. You should print your P32 at this point to get the corrected values.

Correcting personal employee information

If you submit an FPS and an employee's personal details are incorrect, you must contact HMRC to report this.

  • If the employee's personal details have changed, for example surname or address, then advise your employee to contact HMRC to report the change. You can then enter the correct employee details into their record for submission on your next FPS.
  • If the error relates to the date the employee started working for you, do not change the start date on your next FPS as this results in duplication of the employee's record on HMRC systems. If you need to correct an error of this nature, contact HMRC.

NOTE: If you enter the details in your software, but don't report the changes to HMRC, the new details don't update on the employee's HMRC record. This may result in a query from HMRC.

Correcting errors in a previous tax year

If you notice a mistake in a previous tax year, how you correct it depends if it's before or after 19 April. Read more >

Correcting an employer payment summary (EPS)

If you've submitted an EPS with incorrect values, you should submit a new EPS to replace it.

Correcting Nominal Link postings

If you need to correct your Nominal Link postings to your Accounts software, refer to the following guide >

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