After submitting a batch to IR, you might from time to time find an error in your pay processing. For example, you might have missed some pays or over- or under-paid an employee. How you correct your payday filing submission, depends on whether you are doing an adjustment pay or a full restore/replace to correct the errors. 

Scenario 1 – adjustment pays with positive employee totals

You can correct an error in an employee's pay in the next pay run, however, if you cannot wait until then, simply enter an adjustment pay. This will create a new batch that you can submit to IR in the usual way. 

To correct an employee's pay (with positive total) using an adjustment pay:

  1. Enter an adjustment pays as usual. See Entering adjustment pays.
  2. The adjustment pay will create a new payday filing  batch.
  3. Submit the new batch in to myIR as usual.

Scenario 2 – adjustment pays with negative employee totals

If you are changing an employee pay by creating a new (adjustment) pay and the employee pay is now negative, you will need to consolidate the new batch with the related primary (original) batch because IR does not accept employee pays with a negative value. To do so you must first reverse the original batch, then consolidate the new batch into the original batch, and finally submit the combined batch to IR.  

To correct an employee's pay (with negative total) using an adjustment pay:

  1. Enter an adjustment pays as usual, ensuring the Date Paid is in the same calendar month as the payday filing batch requiring the adjustment. See Entering adjustment pays.
  2. The adjustment pay will create a new payday filing  batch.
  3. On the payday filing Batch List screen, locate the original batch (which has been submitted and therefore status is IR Confirmed) and click the Reverse button to zero out the submission.  (If the original batch was never submitted to IR, skip this step.)

  4. Drill down on the adjustment batch to display the Batch Details screen.
  5. Click "Correcting a batch" to expand the screen and then click the Consolidate with... button to open the Available Batches for Consolidation screen.

  6. Select the batch that you want to consolidate with this batch, which is the Reversed batch from Step 3 above and then click the Consolidate button . You can select more than one batch to consolidate if required.  

    Note: If you accidentally consolidate the wrong batch into a primary batch, you can undo the consolidation by de-selecting the batch and then clicking the Consolidate button again..    

  7. The employee totals from all batches are consolidated into one batch. The Total Gross Earnings and Total Tax on the Details screen show the totals from the combined batches. The consolidated and individual batch values are shown in EI Return Report.

  8. Submit the new batch to myIR as usual.

Scenario 3 – restore from archive and reverse batch

Restore from archive and redo the pay run and then reverse the submission to IR, as described below.

To correct a pay run and reverse the IR submission:

  1. Restore the archived dataset and enter the correct pays.
  2. Choose Transactions | Payroll | Check Payroll | Check Pays.
  3. Set the Pay Period Ending Date field to the required month (to backdate the payroll changes).
  4. Print your usual payroll reports.
  5. Choose Transactions | Payroll | Process Payroll | Update Files.
  6. In payday filing Batch List screen, reverse the incorrect batch by clicking the Reverse button. 
  7. Once the batch is reversed the batch status changes to  Reversed.
  8. Submit the new batch to myIR as usual. 

Note: If you accidentally reverse the wrong batch, you can drill-down on the batch into the Batch Details screen and click the Resubmit button to submit it to IR again. .  

Tax in arrears

If one of your employees owes the IRD tax payments in arrears, create a deduction for arrears. Exclude the deduction from the EMS report and Payday Filing by setting the EMS Tax Report Code field to Do not show on EMS Tax Report.

Note: Attaché Software strongly recommends that you seek advice from the appropriate authority (e.g. Inland Revenue or MBIE) regarding meeting the requirements of the legislation or contractual obligations with employees.

REF: HL0034, HL0038 130120