Even payroll experts are bound to make mistakes from time to time! With the Adjustment tool, you can tidy up your reports and ensure that your books are crystal clear come year-end.
If you overpaid or underpaid on a previous pay run, the Adjustment tool allows you to generate a new set of reports with adjusted amounts. Your data is then accurate for future payroll runs and year-to-date forms.
There are two types of adjustments:
- Pay period adjustment: adjust the most recent finalized pay period for an individual
- Year-to-date (YTD) adjustment: update the year to date values on the reports of the most recently finalized payroll for an individual
The adjustment tool does not move any money. Any underpayments need to be distributed outside of Wagepoint and any pay overpayments need to be collected outside of Wagepoint.
The adjustment tool can create tax overpayment credits that may be applied to future payrolls. These credits reduce the amount of tax debited in the next payroll with tax.
Video: Create a pay period adjustment
Prefer written instructions with screenshots? Click here for a step-by-step guide.
Video: Create a year-to-date adjustment
Prefer written instructions with screenshots? Click here for a step-by-step guide.
View an adjusted report
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.
1. In the navigation bar, select Reports. Locate the relevant report and click the title.
2. Under Pay period, you'll see any pay periods run for groups using the filtered criteria. Locate the relevant pay period, and select the version with (Adjusted). Then, click Run report.
- Note: you may need to use the other filters to find the relevant report.
3. Review your adjusted report for this pay period.
- This banner indicates that this is an adjusted report. You can click View adjustment to review your adjustment.
View adjustment history
To view previous adjustments, go to Payroll > Adjustments in the navigation bar. In the table, you'll see any previous adjustments you have created. Locate the relevant adjustment and click View.
View adjustment credits
Important! Credits will not carry over to the next calendar year. On January 1, the system will send an in-app notification if you have any remaining outstanding tax credits for the previous calendar year. You will need to contact the applicable tax agency moving forward. Your credit history will remain visible in the credit table.
1. In the navigation menu, go to Payroll > Adjustments.
2. Click Credits to access the Credits tab. If you have any current-year tax credits, they will be displayed on this page in table view. If you have prior year credits, use the drop-down menu to select the relevant year.
The table has the following headers:
- Tax agency
- Account number: The tax agency account number for remitting purposes.
- Available credit: The total amount of credit you are entitled to.
- Applied credit: The total amount of credit you have applied to payrolls.
- Remaining credit: The total amount of credit remaining to be used.
3. For further information about a particular credit, locate the relevant credit and click View.
4. Review the details displayed on the slide-out panel, including the account number, available credit, remaining credit, and credit history.
- Under Credit history, you'll find:
- Details: Invoice number credit was actioned on/applied to.
- Account number: Agency account number.
- Applied credit: Credit amount applied to the noted invoice.
FAQs: Adjustments
Understanding adjustments
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You might want to use the adjustment tool if:
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You overpaid someone and want to correct the amount in the reports. (You’ll still need to take care of the money outside of Wagepoint).
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You realize you’ve made a mistake on a past payroll, and you need to change your YTD data to ensure it is correctly reflected in reports and on future payrolls.
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You want to make some YTD adjustments so that your final reports of the year align with T4/T4As.
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By default, the Account owner and Payroll administrator roles have access to Adjustments. The report admin doesn’t have access to adjustments by default. If you would like your reports admin to have access to adjustments, the permissions must be changed manually.
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If you use the adjustment tool, two reports for the relevant period will be maintained:
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the original report will be maintained with a banner that indicates there is an adjusted version
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the adjusted report will be maintained and include a link to the adjustment summary page
- Both reports will be available as long as your Wagepoint account remains active.
- If multiple adjustments have been made to the same pay period (for example, if you adjusted a pay period and then made a YTD adjustment that includes the same pay period), it will always show the most updated adjustment report. Wagepoint does not keep an adjusted report for each individual adjustment, only one adjustment report per pay period.
- There are no retroactive report changes. Once an original report is created, it stays as it is. We don’t adjust historic reports based on adjustments. All adjustments will have new reports created for them, with the exception of if two adjustments are made for the same period. The adjusted report will be updated to show both adjustments on the one report.
- 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.
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- No, the Adjustment tool is included in your monthly subscription fee!
- If you create a pay period adjustment to adjust overpaid source deductions or employer taxes, you can choose to:
- 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.
- No, adjustments can only be made for the current year.
- No, adjustments can only be created for one individual at a time. If you need to create adjustments for multiple employees, they must be completed individually.
- No, not at this time.
Using the Adjustments tool
- You can make an adjustment after your payroll is finalized. If you make an adjustment before we withdraw the deposit, Wagepoint will still move funds based on the original payroll. Money movement cannot be changed or stopped using the Adjustment tool.
- You can only opt to apply a credit if you are using the pay period adjustment tool (not the year-to-date tool). If you are still unable to apply a credit using the pay period adjustment tool, please reach out to our support team for assistance!
- You will need to manually update the vacation accrual balance. It doesn’t happen automatically.
- If your employees are set up to use our Employee portal, then they will find an adjusted paystub available in their portal which shows the most recent adjustment and (optionally) a memo. Your employee will only see the newest, adjusted paystub. If they would like a copy of the original, you will need to provide that.
If your employees receive paystubs by mail, you will need to mail a new paystub to the employee outside of Wagepoint. -
If you click the back button in the workflow, your information will be saved while you are in the workflow. If you click cancel, you will be asked to confirm that you would like to leave the workflow without saving changes. If you close your browser window or tab, your work will not save.
- You cannot go to net negatives at any point in the Adjustment workflow. The tooltip will go red if you reduce by more than the posted amount.
- If you don't see your questions listed here, please reach out to our friendly support team by emailing support@wagepoint.com!