Adjust Pays Processed with an Incorrect ETP Code

Overview

If an employee has been paid using an incorrect ETP code, you can follow the steps below to reverse the original payment and reprocess it using the correct ETP code.

Reverse the Incorrectly Processed Pay

Before you process the adjustment, ensure that any pending timesheets are finalised and processed through your normal payroll process. You can also run your payroll reports to determine the amounts that need to be reversed. 

1. Go to Payroll > Process Payroll > Process Payroll > select the Pay Cycle or set the Report Settings criteria > Add Lump Sum Pay.

2. Search for the employee, then complete the fields as required, ensuring that you select the ETP Code that was incorrectly assigned in the original pay, then click Add Lump Sum Pay.

3. Set the lump sum pay with the same Pay Date as the original ETP was processed. Tick the checkbox to select the pay, then click Create Pay Run > select Recalculate Selected > edit the Pay Date > Apply.
   IMPORTANT: If a different Pay Date is used to the original, additional negative records will be created in the STP data, which will fail validation. 

4. Expand the employee pay in the Process Payroll report and add the other items included in the original pay. You will need to ensure that you use the exact items that were used when the amounts were originally processed in the incorrect pay.

5. Check that the Units for each item are negative to reverse out what was paid to the employee under the incorrect ETP code. You may need to manually overwrite the tax amount to match what was taxed in the original pay.

6. The negative values will create a recoverable deduction. You can add this to an existing pay run or create a new pay run for processing.

You will need to repeat the above process for each employee whose pay needs adjusting. We recommend including all negative adjustments in one pay run.

Reprocess the Pay with the Correct ETP Code

Once the reversal is processed, create another lump sum payment to enter the pay against the correct ETP code.

1. Go to Payroll > Process Payroll > Process Payroll > select the Pay Cycle or set the Report Settings criteria > Add Lump Sum Pay.

2. Select the employee and complete the fields as required, setting the correct ETP Code from the drop-down, then click Add Lump Sum Pay. Set the ETP Code field as ‘Not applicable’ if the payment shouldn’t actually be processed as an ETP.

3. Expand the employee pay in the Process Payroll report and add any other items to the pay. Ensure that you check the tax amount that calculates and overwrite this manually if you need to.

4. Once the amounts are confirmed, select the employee pay and add it to an existing pay run or create a new pay run.