A pay period adjustment is used to update the report values in the most recent finalized payroll run for an individual.
If you just ran payroll and realize you've made a mistake, you'll want to use this tool so that your records are accurate and align with your T4 and T4A at year-end.
If you would like to adjust the Year-to-date values in your reports, you'll want to create a year-to-date adjustment instead.
When you create a pay period adjustment, two versions of the impacted reports are maintained:
- the original report will be maintained with a banner that indicates there is an adjusted version
- an adjusted report will be maintained and include a link to the adjustment summary page
If you're new to Adjustments, you might want to start with our Adjustments guide here!
A pay period adjustment does not move any money. You will need to take care of any under or overpayments manually, outside of Wagepoint.
An adjustment will not generate a new posting journal report. You will need to make any needed adjustments directly in your bookkeeping platform. You can find the adjusted amount data you'll need in your adjustment history.
Navigate to the Adjustments tool
1. In the navigation menu, go to Payroll > Adjustments.
2. Click Create adjustment.
- Under Selected pay period, you will see the pay date and pay period details that you are creating the adjustment for.
Step 1: Incomes, deductions & benefits
In Step 1, you'll review and make any adjustments to income, deduction, and benefit codes. Any IDB codes that were assigned in the original payroll would appear here, but you can also add additional codes.
On each step of the Adjustment workflow, you’ll see the adjustment details entered on the previous page: pay period, pay group, pay date, and adjustment type.
4. Under Wages and incomes, make any necessary adjustment to the Hours and Amounts.
-
Any Wages and incomes that were assigned in the original payroll would appear here, but you can also add additional codes.
-
The Posted column shows the original processed amount
-
In the Adjustment column, enter the difference between the posted amount and the actual amount.
-
For example, if the posted amount was $20 more than intended (an overpayment), then the adjustment is “-20” (to reduce the pay by $20). If the posted amount was $20 less than intended (an underpayment), then the adjustment is “20” (to increase the pay by $20).
-
-
The Updated column will show the updated amount.
5. To add an additional income code, click Add income.
6. Using the drop-down menu, select the relevant income code. Then, click Add.
7. An additional row will appear with the relevant income code. In the Adjustment column, enter the adjustment.
Tip: Check the total rows to make sure your adjustment is as expected.
8. Under Deductions and Benefits, add any necessary codes and make the necessary adjustments to the Amounts.
-
Any deductions and benefits that were assigned in the original payroll would appear here, but you can also add additional codes.
-
The Posted column shows the original processed amount
-
In the Adjustment column, enter the difference between the posted amount and the actual amount.
-
For example, if the posted amount was $20 more than intended (an overpayment), then the adjustment is “-20” (to reduce the pay by $20). If the posted amount was $20 less than intended (an underpayment), then the adjustment is “20” (to increase the pay by $20).
-
9. When you have review your adjustment data, click Continue.
Step 2: Source deductions
On the second step, you'll make any adjustments to source deductions. Employer portions are auto-calculated and cannot be edited directly.
10. Under Source deductions, make any necessary adjustment to the Amounts.
-
The Posted column shows the original processed amount.
-
Under Adjustment, enter the difference between the posted amount and the actual amount. For example, if the posted amount was $20 more than intended (an overpayment), then the adjustment is “-20” (to reduce the pay by $20). If the posted amount was $20 less than intended (an underpayment), then the adjustment is “20” (to increase the pay by $20).
11. To add additional taxes, click Add tax.
12. Select the relevant tax and click Add.
13. An additional row will appear with the relevant tax. In the Adjustment column, enter the adjustment. If there is both an employer and employee portion, then two rows will appear and the Employer portion will be automatically calculated based on the Employee amount.
14. Click Continue.
Step 3: Employer taxes
The employer taxes on this page will reflect the employer taxes that you have set up in your account. If you expect to see an employer tax that is not here, you'll need to exit the Adjustment tool and set up the relevant employer tax first.
Step 4: Review and submit
- If you need to make a change on previous steps, simply click the relevant step in the top workflow navigation.
- Apply as credit: This credit can be applied towards the amount of tax debited in the next payroll run with tax. For example, if I have overpaid $100 towards source deductions in my last pay period, I can create a pay period adjustment for -$100 and select Apply as credit. This will give me a credit of $100. Wagepoint will collect $100 less from my account in source deductions, as this has already been collected and remitted in my past payroll.
- Collect directly: If you choose to collect directly, you will need to work with the CRA to return the adjusted amount to me. This money movement will happen entirely outside of Wagepoint.
