Correct a completed pay run

Summary

How to correct a completed pay run in Sage Paroll.

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, or paid an employee using the wrong tax code.

This article explains how to make these corrections and the impact on your future pay runs.

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.

To edit a completed pay run

If you need to correct any errors or make any adjustments, you can edit or make changes to your 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.

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, you can make any required changes.
To save your changes, select Save corrections.
Decide if you want the changes to show in the next pay run or not. Select the appropriate option.
Then click Confirm.

Next steps

When you select Complete Pay Run, we send your pay run details to HMRC straight away. This happens even if you haven't actually paid your employees yet.

When you edit a completed pay run, the updated information is not sent to HMRC straight away. It's included in the next pay period. Don't worry, this is what HMRC is expecting.

If the changes you make affect the amount of Net pay due to an employee, a correction shows in the next pay run. This is to cover this change.

It's not added to the pay run you're changing.

What you need to do next depends on whether you paid your employee before or after making any changes.

You paid your employee the adjusted amount in the corrected pay period

There may be times when you accidentally included the correction in the next pay period but do not want it to.

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 employees pay and from their payslip. You need to reverse the amount of the correction.

To reverse a correction, you need to add either add a business expense or net deduction. Entering it in this way ensures the reversal only affects Net pay.

Read how to reverse correction deductions and payments:

How to reverse a correction deduction

How to reverse a correction payment

You will pay your employee the adjusted amount in a following pay period

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.

When you Save Correction, 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.

The Full Payment Submission (FPS) and P32 report also include the correction.

You ran your payroll using an incorrect date

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 impacts

You 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 you

Select 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 missing weeks, 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 used. This will result in a higher or lower-than-expected payment
The statutory amount paid in the next pay run will be "corrected". 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.
- Exporting the detailed payroll support
- Reprinting payslips
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.

The corrections will need to be reversed by following the relevant article:

Corrections in your liabilities will be reported to HMRC on your FPS. You may see an adjustment on the P32. We recommend paying to HMRC the values on the P32.

Correct a completed pay run

Summary

Description

Resolution

Before you edit a completed pay run

We recommend that:

To edit a completed pay run

To edit absences

To edit pay

Next steps

You paid your employee the adjusted amount in the corrected pay period

You will pay your employee the adjusted amount in a following pay period

You ran your payroll using an incorrect date

Possible impacts

To check which of the scenarios applies to you

To correct the payroll

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FAQs

Correct a completed pay run

Summary

Description

Resolution

Before you edit a completed pay runWe recommend that:

To edit a completed pay run

To edit absences

To edit pay

Next steps

You paid your employee the adjusted amount in the corrected pay period

You will pay your employee the adjusted amount in a following pay period

You ran your payroll using an incorrect date

Possible impacts

To check which of the scenarios applies to you

To correct the payroll

Related Solutions

Before you edit a completed pay run

We recommend that: