Reversal scenarios

You can process a reversal for an employee regardless of the employee's status (for example, even if the employee is Terminated or On Leave).

If you intend to change the employee's permanent rate of pay (on the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile. or the Permanent Rates, Factors, Earnings page. From the Payroll menu, select Regular Payment > Permanent Rates, Factors, Earnings.) during the same payroll period as you enter a reversal for that employee, and the reversal must use the employee's former hourly rate of pay, enter the old rate of pay in the Exception Rate field.

This must be done because a change to the employee's permanent rate of pay is effective immediately upon entry and will make a reversal using the old rate out of balance. It does not matter whether the reversal was entered before or after the change in rate was made.

Only one reversal can be entered for the same employee in the same pay period. If you need to update more than one cheque, you must manually add like earnings, deductions and benefit amounts together to fill in the fields on the Reversal page. From the Payroll menu, select Adjustments > Reversal. For example, add the regular hours from all cheques and add the EI amounts from all cheques.

Note: Make sure that different hours types, rates, and exception departments are retained as separate entries so that the entry is backed out completely for ROE, year-to-date and General Ledger requirements. For example, enter regular hours with no exceptions on one line, and enter regular hours worked for an exception department or at an exception rate on another line.

The end result is that you enter one reversal in Powerpay that represents the totals for all cheques issued to that one employee.

Important: Contact your Customer Support Team for assistance with these entries if Dayforce remits on your behalf.

Important: Contact your Customer Support Team for assistance with these entries if Dayforce remits on your behalf.

For certain vendors, Dayforce can collect and submit a remittance file to the vendor for the total value of deductions and contributions for employees enrolled in a plan.

Benefit vendors do NOT accept negative amounts (the reversal of a deduction or contribution) because the money is for an investment plan and the funds are already in the employee's account.

If you enter a negative deduction or contribution as part of your correction entry, the negative entry is accepted by Powerpay, and the year-to-date values are adjusted accordingly. However, the negative adjustment amount is not included with the file to that benefit vendor. The employer must seek restitution for the over-contribution from the employee or from the benefit vendor directly.

It is your responsibility to determine which of your vendors accept negative deductions and which do not.

If an employee (salaried or hourly) is normally paid vacation pay each pay period, enter the opposite of the vacation value in the Earnings section as Vacation $ - No Time Taken (NTT). This ensures that no Insurable Hours are calculated on the amount in accordance with payroll legislation.

If an employee (salaried or hourly) is normally paid additional accumulator pay each pay period, enter the opposite of this pay value in the Earnings section as Auto Stat Pay $ - No Time Taken (NTT).

Note: Additional Accumulator Pay, when it is paid each pay period, is ALWAYS entered as Auto Stat Pay. This does NOT apply to "previous vac."

If an employee (salaried or hourly) is normally paid both vacation pay and additional accumulator pay each pay period, enter the opposite of:

• the regular vacation pay amount in the Earnings section as Vacation $ - No Time Taken (NTT)
• the regular additional accumulator pay amount in the Earnings section as Auto Stat Pay $ - No Time Taken (NTT).