An Employee Adjustment is a one-time adjustment. These are often made to correct errors in the previous payroll period. Please note that this is NOT a Basic Pay Adjustment, which is a change made to an employee's recurring salary.
To add an Employee Adjustment, go to Employees>Click Employee>Adjustments>Add Employee Adjustment.
You can also do this by going to Employees>Adjustments>Add Employee Adjustment.
The Add Payroll Adjustment box will pop up.
Enter the details as follows:
Amount - The amount of the adjustment. Please note that this can be a positive or a negative number.
Type - The Adjustment Type. The options are as follows:
Taxable Income - this is the default option. The adjustment is added to the employee's taxable income and included in the tax calculation for the payroll period
Non-Taxable Income - The adjustment is added after tax is calculated and is included as non-taxable income
Tax Adjustment - The adjustment will be added to or deducted directly from the tax for that payroll period. This would be useful if you were doing your Annualization manually. Please note that a positive tax adjustment will result in addition to the tax, meaning a deduction in the employee's income. A negative tax adjustment will result in a subtraction from the tax, meaning an addition to the employee's income.
Non-Income - The adjustment is added directly to Net Pay, similar to an expense reimbursement
Payroll Date - The pay run when the adjustment will take place.
Reason - The reason for the adjustment.
Editing the Adjustment
You can edit the Adjustment you just added. Click the Adjustment you want to edit and the Edit Adjustment form will pop up. Make the necessary edits and click Save. Otherwise, click Cancel.
Make the necessary changes and click Update. Otherwise, click Cancel.
Deleting the Adjustment
You can delete the Adjustment after you have added it to your employee. Adjustments can be deleted one at a time or simultaneously. To delete one at a time, tick the box of the Adjustment you would like to delete and click the Trash button next to the Add Adjustment button.
A warning prompt will appear. Click Yes to proceed on the deletion of Adjustment. Otherwise, click No.
If you want to delete all Adjustments simultaneously, click the tick box at the first column and a Trashbutton will appear next to the Add Adjustments button. All of the boxes will be ticked. You can untick the boxes for the Adjustments you do not want to delete. Click theTrash button.