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 adjustment go to Employees and click the employee for whom you want to add an adjustment.

Go to Payroll>Adjustments and click Add Adjustment.

The Add 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.

Click Add.