How to correct an overpayment to an employee

Examples of overpayments

Gross Pay overstated:

  • Gross salary overstated (Eg salary override was needed but not entered)
  • Hours overstated (Eg keying error)

To correct gross pay overstated:

  • Determine the correct gross pay

  • Use Powerpay to calculate correct statutory deductions (CPP/QPP, EI/QPIP, Taxes) by entering the correct amount in the next regular run

    Note: Ensure any entries not applicable to the next regular run are modified or removed before processing the next payroll

  • Enter Reversal in Powerpay to remove the incorrect payment
  • Enter Manual in Powerpay to enter the correct payment
  • The difference in the net pay amounts is the amount the employee has been overpaid.

Options to recoup overpayment from employee:

  • Take a one time deduction (Eg Misc Ded or Advance) of the amount owed back from the employee on the next pay processed
  • Ask the employee to pay the overpaid amount back (Eg via personal cheque or cash)

For assistance, please contact your Customer Support Team.