What is a correction?
A correction is a payment or deduction added to an employee’s pay details to cover a change in the pay they were entitled to in a previous pay run.
Corrections can appear due to:
- Edits made to a previous pay run.
- Recording absences in the current pay run, but the absence dates belong to the previous pay run.
- Adding a pension when the staging date is in an already processed pay run.
If you see a payment or deduction called Correction in the Edit Pay window for the current pay run, either a completed pay run has been edited, you’ve specified an absence that occurred in a completed pay run or you have added a Pension with a staging date in a previously completed pay run.
Payroll assumes that the employee has already been paid for every completed pay run. This is why it applies the necessary pay correction in the current pay run.
Suppose that you specified £350 in gross pay for Bill Carr in week 3. This led to net pay due to Bill of £325.88. You completed the pay run and paid all employees for week 3.
In Week 5 you spotted that this was an error. Bill Carr was actually due £360 in week 3. So you opened week 3 in corrections mode
The net pay due to Bill in week 3 changed as a result. Bill was actually due £334.68. The difference is made up to Bill in the current pay run, week 5, in the form of a Correction payment of £8.80.
Bill sees the correction as a separate item on his payslip for the current pay run.
For more information about corrections, refer to: