# How to correct an employee’s pay when paid the wrong pay items

KB144

### Overview

Sometimes an employee gets paid using the wrong Pay items e.g. you used ORD instead of OT1.5. Sometimes this results in a change in their pay, and sometimes it doesn’t (e.g. you just used the wrong type of leave).

In either case, if you have not yet issued pay slips and not transferred the money to the bank, then the easiest option is to un-apply the pay run and correct it. Otherwise, you should create an adjustment pay run.

### Process

1. Create a new Pay run and add the employee
2. Make sure their Pay From and Pay To dates are the same as the pay run that was incorrect
3. The easiest method, so that you can see what is going on, is to:
   1. Add the pay items that were INCORRECT onto this pay run but make their quantity negative. This will reverse the effect of the incorrect pay items
4. Add the same pay items again, only this time, use the correct quantity of each pay item
5. Add an EXTRATAX pay item
   1. You will need to manually calculate the difference in tax and adjust accordingly, to ensure that the employee has been charged the correct amount of tax for both pay runs combined

Ensure that you add plenty of notes to the pay run to explain exactly how, when and why the adjustments are being made. Always have supporting evidence and reference the incorrect pay run number.

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Last edit 17/01/20