Correct an employee's pay with an extra run

When an employee has been paid incorrectly, a best practice is to reverse the payment and issue a replacement payment on an extra run. This ensures the Record of Employment is amended for the correct pay period and the exemptions for tax and CPP/QPP are applied without manual intervention.

1. Stop payment on an employee's deposit or cheque. If the stop is unsuccessful, complete the steps to Supplement an employee's pay with an extra run.

2. Create an extra un.

3. Click the Pay Period menu and click the Enter button for the pay period you want to work with.

4. Reverse the incorrect payment. For more information, see Reverse the record of an incorrect payment from a previous payroll run in the current year.

5. Open the Employee Timesheet page. From the Payroll menu, select Regular Payment > Employee Timesheet.
6. Select the employee from the Employee List.

7. Enter the employee's earnings.

   • For an hourly employee, enter the applicable hours and other pay information associated with those hours, if necessary.
   • For a salaried employee, select Salary Override from the Earnings Description list, and enter a salary amount that applies to this pay.
   • Enter any other applicable earnings as one-time amounts.

8. Enter an Applicable Period of Time value that corresponds to the length of time for which these earnings apply.

   Note: Because this is an extra payroll run, the calculation of CPP/QPP and tax is not, by default, associated with a period of time.

9. Click Save,

10. Enter the appropriate dollar value deductions and contributions as one-time values in the This Pay Only field on the Deductions & Contributions page. From the Payroll menu, select Regular Payment > Deductions & Contributions. For more information, see Take specific deductions and contributions on an extra run.

    In this scenario, these values will likely be the same as the deductions and contributions from the regular payroll run.

    Note: The Remaining Target values, if applicable, reflect the values from the processing of the last payroll. When an employee's earnings are reversed, the target values will reflect the reversed amounts included with this extra run.

11. Click Save.

If an employee has been short-paid, you can supplement the payment issued rather than stopping the incorrect payment.

1. Create an extra run.

2. Click the Pay Period menu and click the Enter button for the pay period you want to work with.
3. Select the employee from the Employee List.

4. Enter the employee's earnings missed on the regular payroll run on the Employee Timesheet page. From the Payroll menu, select Regular Payment > Employee Timesheet.

   • For an hourly employee, enter the applicable hours and other pay information associated with those hours, if necessary.
   • For a salaried employee, select Salary Override from the Earnings Description list box, and enter a salary amount that applies to this pay.
   • Enter any other applicable earnings as one-time amounts.

5. Select No time taken: Extra payment in the Applicable Period of Time list.

   This ensures that the CPP/QPP exemption amount is not applied twice (once to the regular run and again with this extra payroll run).

6. Determine if the CPP/QPP exemption amount was fully applied on the regular run to prevent the possibility of a CPP/QPP overpayment occurring due to an additional payment. If you determine that the CPP/QPP exemption amount was not fully applied on the regular run, enter the CPP/QPP deduction as a one-time amount in the This Pay Only section of the Statutory Deductions page. From the Payroll menu, select Regular Payment > Statutory Deductions.
   

   Manually calculate CPP/QPP exemption:

   Example:

   Jane Doe was short-paid with the last regular payroll. She should have been paid for 40 hours, but due to a typo, she was only paid 4 hours. Her rate of pay is $10 per hour. She received $40 gross pay instead of $400 and you want to pay her the $360 difference through an extra run. Jane is paid weekly.

   Note: If taxable benefits are included with your scenario, include these values in your calculation.

   1. Look up the CPP/QPP Basic Exemption for weekly payrolls. You can find this on the Dayforce Compliance Centre. (This amount varies by payroll type and can change yearly, so check that you have the correct value.)

      Jane was paid $40, so she still has $27.30 left on her exemption ($67.30 exemption - $40 paid = $27.30 remaining exemption).

   2. Subtract the remaining exemption from the extra run's gross pay amount to find Jane's non-exempt earnings ($360 gross pay - $27.30 exemption = $332.70 non-exempt earnings).
   3. Multiply her non-exempt earnings by the CPP/QPP rate to determine the amount of CPP/QPP you should deduct from the extra run ($332.70 non-exempt earnings x 5.7% CPP/QPP rate = $18.96 CPP/QPP deduction).
   4. If this correction is recorded as a year-end adjustment, after the final payroll of the year has processed, confirm this deduction will not exceed Jane's yearly maximum allowable contributions for CPP/QPP. You can find this on the Dayforce Compliance Centre. If it does, deduct only that portion of the deduction amount that brings her CPP/QPP to her yearly maximum allowable contribution.
7. Click Save.

8. Refer to your Payroll Register report to review the following amounts:

   1. Deductions or contributions based on a calculation that were not calculated in full due to the short payment.

   2. Dollar-value deductions that have already been taken.

   3. Any "Excess Deduction amount" created.

      Explanation: When earnings entered for a short-paid employee on the regular pay run are not sufficient to cover dollar-value deductions, Powerpay takes the following actions:

      • Marks those deductions PAID

      • Takes note of the dollar shortage

      • Reports the "excess deduction amount" on the Register Report

        Note: Dollar-value amounts are taken in their entirety even when an employee is short-paid.

9. Go to the Deductions & Contributions page. From the Payroll menu, select Regular Payment > Deductions & Contributions.

   1. If the Register Report displays an Excess Deduction created for the short payment, go to the Excess Deduction amount to be taken section and enter the amount to collect in the Excess Deduction field.

   2. For deductions based on a calculation, go to the Employee Deductions section and enter a one-time amount in the This Pay Only field.

   3. For contributions based on a calculation, go to the Employee Contributions section and enter a one-time amount in the This Pay Only field.

10. Click Save.