Pay Run Corrections

How do I correct mistakes in a finalised Normal pay?

You should use an Adjustment Pay Run to add forgotten items (e.g. overtime hours, a bonus or deduction) or to adjust or remove an incorrect amount by repeating the incorrect entry but with a negative amount.

The employee will receive two pay advices with the same Pay To date, the Normal Pay Advice and an Adjustment Pay Advice and the total paid will be the sum of the two pay advices.

Please see Performing an Adjustment Pay Run - Quick Reference Guide for step by step instructions.

For further information, please see Processing Adjustment Pay Runs.

How do I correct mistakes in a finalised Termination Pay?

Please see Termination Pay Corrections.

Can I reverse an incorrect pay run?

Although you can not delete a pay run, you can use an Adjustment Pay Run to reverse an entire pay run for one or all employees.

Effectively, you enter all the same figures as on the incorrect pay run but in reverse (i.e. negatives instead of positives and positives instead of negatives) and check that the Net Pay is the same as on the incorrect pay run but negative.

The Adjustment Pay Run thereby reverses everything done by the incorrect pay run and automatically sends a journal to your General Ledger to do the same there.

Once this is done you can perform another Adjustment Pay Run to pay employees correctly for the pay period. Note that because Adjustment Pay Runs do not bring in employee defaults (e.g. Earnings, Allowances, Deductions etc) you will need to enter all figures manually.

Please see Performing a Pay Run Reversal - Quick Reference Guide for step by step instructions.

For further information please see Processing Adjustment Pay Runs.

How do I process Leave days already paid as Standard Hours?

This situation most commonly arises in workplaces where the employees are paid monthly, 2 weeks in arrears and two weeks in advance, and an employee is away sick in the weeks paid in advance.

However, it can also occur when the payroll officer is not advised of an absence until after completing the pay run.

Best practice is to use an Adjustment Pay Run to replace the Standard Hours with Leave Hours.

To do this, create an Adjustment Leave entry with the correct dates and hours that the employee was absent.

Perform an Adjustment Pay Run for that employee

In the Earnings section, enter on Standard Hours and enter the same hours as on the Adjustment Leave entry but select 'Reduce Hours' before clicking on the OK button.

This will add Leave hours and remove the same number of Standard Hours, producing a Net Pay of $0 but deducting the leave hours from the employee's accrued leave total and sending a journal to Marlin GTX/TX that will decrease the accrued leave liability in the General Ledger.

The Pay Advice from the Adjustment Pay will show the corrected leave balances at the bottom. Print it and staple it to the Pay Advice from the normal pay run or provide it to the employee to do so.

Note: This method works for Sick, Annual or Long Service Leave.

If the employee is entitled to leave loading, the Net Pay will be equal to that loading and will be payable to the employee.

It is not recommended that you use an Opening Balance Adjustment to correct the employee's leave balance as this will cause a discrepancy between the closing leave balance on one Pay Advice and the opening leave balance on the next Pay Advice.

It will also cause a discrepancy between Marlin HR and your Marlin GTX/TX General Ledger as no journal will be sent to reduce the accrued leave liability in the General Ledger.

Nor does this method account for leave loading if relevant.

Please see Performing an Adjustment Pay Run - Quick Reference Guide for step by step instructions.

For further information please see Processing Adjustment Pay Runs.

What if an employee is paid in advance for Leave but then works?

Best practice is to use an Adjustment Pay Run to replace the Leave Hours with Standard Hours.

To do this, create an Adjustment Leave entry with the actual dates and hours that the employee worked during the period originally paid as leave.

Select 'Increase Balance' to add these hours back onto their leave balance.

If the employee was originally paid Leave Loading and if you are entitled to retrieve the loading amount from them, tick the Pay Loading checkbox.

Otherwise leave it unticked.

Perform an Adjustment Pay Run for that employee

In the Earnings section, enter on Standard Hours and enter the same number of hours as you entered on the Adjustment Leave entry, select 'Add Hours' before clicking on the OK button.

This will add Standard Hours and remove the same number of Leave Hours.

It will also add the leave hours back onto the employee's accrued leave balance and send a journal to Marlin GTX/TX that will increase the accrued leave liability in the General Ledger.

If you left Pay Loading unticked on the Adjustment Leave entry, the Net Pay will be $0.

If ticked, the Net Pay will be the amount of leave loading that was paid.

The Pay Advice from the Adjustment Pay will show the corrected leave balances at the bottom. Print it and staple it to the Pay Advice from the normal pay run or provide it to the employee to do so.

It is not recommended that you use an Opening Balance Adjustment to correct the employee's leave balance as this will cause a discrepancy between the closing leave balance on one Pay Advice and the opening leave balance on the next Pay Advice.

It will also cause a discrepancy between Marlin HR and your Marlin GTX/TX General Ledger as no journal will be sent to increase the accrued leave liability in the General Ledger.

Nor does this method account for leave loading if relevant.

Please see Performing an Adjustment Pay Run - Quick Reference Guide for step by step instructions.

For further information please see Processing Adjustment Pay Runs.

What if an employee is sick when on Annual Leave?

If an employee provides a doctor's certificate declaring them unfit to work on days that fell within their annual leave period, you may be required to add those days back onto their accrued annual leave balance (please consult your employer organisation or the ATO for advice) and subtract them from their accrued sick leave balance instead.

To do this, you will need to create Adjustment Leave Entries and then perform an Adjustment Pay Run to process them.

Perform an Adjustment Leave Entry for that employee

Create an Adjustment Leave entry and select Annual Leave as the Leave Type.

Enter the dates and hours that the employee was unfit to work.

Select 'Increase Balance' to put the hours back onto their accrued annual leave balance.

In the 'Reason for Leave' box, enter something like "Changing annual leave to sick leave".

If the employee was paid leave loading on the annual leave, you will need to determine whether you can retrieve the amount of loading paid on day(s) on which the employee was unfit for work.

If so, tick the 'Pay Leave Loading' box.

Otherwise, leave it unticked.

Create an Adjustment Leave entry and select Sick Leave as the Leave Type.

Enter the dates and hours that the employee was unfit to work.

Select 'Reduce Balance' to take the hours off their accrued sick leave balance.

In the 'Reason for Leave' box, enter something like "Changing annual leave to sick leave".

Perform an Adjustment Pay Run for that employee

This will pick up both of the Adjustment Leave entries (negative hours/amount for Annual Leave, positive hours/amount for Sick Leave).

The amounts should cancel each other out, leaving a $0 Net Pay unless you are retrieving leave loading from the employee (in which case the negative Net Pay is the amount the employee owes you).

The Pay Advice from the Adjustment Pay will show the corrected annual leave balance at the bottom.

Print it and provide it to the employee.

It is not recommended that you use Opening Balance Adjustments to correct the employee's leave balance as this will cause a discrepancy between the closing annual leave balance on one Pay Advice and the opening annual leave balance on the next Pay Advice.

It will also cause a discrepancy between Marlin HR and your Marlin GTX/TX General Ledger as no journal will be sent to increase the accrued leave liability in the General Ledger, nor does this method account for leave loading if relevant.

Please see Performing an Adjustment Pay Run - Quick Reference Guide for step by step instructions.

For further information please see Processing Adjustment Pay Runs.

I forgot to pay Leave Loading on a Leave Entry

Best practice is to use Adjustment Leave Entries and an Adjustment Pay Run to replace the Annual Leave With Loading leave entry (with Pay Leave Loading checkbox unticked) with an Annual Leave With Loading leave entry (with Pay Leave Loading checkbox ticked).

To do this, create an Adjustment Leave entry with the same dates and Hours To Be Taken as the original leave entry.

Select 'Increase Balance' to add these hours back onto the employee's leave balance and untick the Pay Leave Loading checkbox.

Create another Adjustment Leave entry with the same dates and Hours To Be Taken as the original leave entry but this time select 'Decrease Balance' to deduct these hours from the employee's leave balance and tick the Pay Leave Loading checkbox.

Perform an Adjustment Pay Run for that employee to process the Adjustment Leave Entries and pay the difference (i.e. the Leave Loading amount).

Perform an Adjustment Pay Run for that employee

In the Earnings section, check that both Leave Entries appear, one with a positive number of hours and one with the same number but as a negative. The Rates and Amounts will be different due to the loading.

Adjust the tax if necessary to reflect the tax payable on the Leave Loading.

The Net Pay should be the leave loading amount less the tax amount.

Finalise the Adjustment Pay.

Print the Pay Advice and provide it to the employee.

I forgot to pay Leave Loading on multiple Leave Entries

In this case it may be too tedious to use Adjustment Leave Entries to reverse and correct all of the leave entries.

Instead, we recommend that you create a new Allowance Type called Leave Loading Backpay (or similar).

Ensure the allowance is pointed to the Salary area on Payment Summaries and is Before Tax.

Determine the amount of Leave Loading to be paid (e.g. hourly rate x leave hours x loading rate) before tax.

Perform an Adjustment Pay Run for that employee

Click on the Before Tax Allowances cell in the This column and then click in the Add button.

Select Leave Loading Backpay from the Allowance Type drop down list and enter the calculated amount.

Adjust the tax to reflect the tax payable on the Leave Loading.

The Net Pay should be the leave loading amount less the tax amount.

Finalise the Adjustment Pay.

Print the Pay Advice and provide it to the employee.