Marlin HR enables pay runs to be reversed and corrected using adjustment pay runs.
If an entire pay run needs to be reversed:
- A reversal adjustment pay run can be used to reverse the incorrect pay run for one or more employees
- A second, corrective adjustment pay run can then be performed to pay employees correctly
Adjustment pay runs do not accrue leave or pre-enter an employee's default earnings, allowances, or deductions.
If you are using the Payday Assist superannuation integration, and have made an overpayment, you will need to cancel the payment in SuperChoice and then redo the entire pay run as an adjustment in HR.
See the SuperChoice Payments help guide for further information.
Before Initialising
Before reversing a pay run, you may need to:
Updating Employee Details
If you have changed any employee details since finalising the incorrect pay run (eg. pay rate):
- Change them back before initialising the reversal pay run (Main > Employee Maintenance)
Adding Leave Entries
If an employee being reversed had a leave entry on the incorrect pay run:
- Add an adjustment leave entry with the same date(s) and hours
- But tick the increase balance box to put the leave back on the employee's balance
Reversal Pay Runs
Reversal pay runs are made from the usual Pay Run module (Main > Pay Run Processing).
In the Pay Run Details section:
- Select Pay Cycle
- Set Type of Pay Run to Adjustment Pay
- Enter the same pay to date used on the incorrect pay run
- Enter the Date Paid of the adjustment run
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In the Employees to Pay section:
- Select the employee(s) for the reversal pay run
- If leave entries are involved, check for a red "Yes" in the Leave Pending column
- Click Initialise
You can still process reversal pay runs for terminated employees by ticking the Show Inactive & Terminated Employees checkbox at the bottom of the Initialise Pay Run screen and selecting the terminated employee.
See the Termination Pay Corrections help guide for further information.
Reverse Pay Details
To perform a reversal pay run, you need to enter all of the same details as on the incorrect pay run but with the hours and amounts entered as negatives (by selecting reduce hours or reduce amount):
- Enter all the same earnings, allowances and deductions as negatives
- Ensure all amounts are identical (but negative), except leave accrued
- Accrued leave will not be reversed by the reversal pay run
- But when you perform the corrective adjustment run afterwards it will not perform the leave accruals again
If all amounts match but the tax figure is different:
- Adjust it by clicking the Tax field then the Tax Adjustment field
Ensure the Net Pay figure matches the incorrect pay run but negative:
- Then click Finalise.
If the incorrect pay run was the most recent one finalised for an employee:
- Click the fields in the Previous Pay column to see the hours and amounts on that pay run
- Then click the This Pay fields and enter the same figures as negatives to reverse them
Click the Print icon to view an interim pay run analysis report and check all figures before finalising the reversal pay run.
Corrective Pay Run
Once finalised, the reversal pay run will cancel out the incorrect pay run.
You can then pay employees correctly by performing another adjustment pay run for the same period.
Before initialising:
- Make any necessary changes to employee details
- Create any leave entries as adjustment leave entries (tick Reduce Balance)
To perform the adjustment pay run:
- Open the Pay Run module (Main > Pay Run Processing)
- Select Adjustment Pay as the Pay Run Type
- Use the same Pay To date as the incorrect pay run
- Process the pay run as you would a normal pay
- Check all figures thoroughly before finalising
See the Adjustment Pay Runs help guide for further information.
Pay Run Journals
If your HR is linked to a GTX system, there will now be three pay run journals in your GTX inbox:
- One for the incorrect normal pay run
- One for the reversal pay run
- And one for the correct pay run
If you reversed all employees, the first two journals will cancel each other out.
However, posting all three journals creates a complete audit trail for future reference, with no missing pay run numbers.
